Wired has an excellent in-depth article by David Wolman: "Fraud U: Toppling a Bogus-Diploma Empire" about the efforts of George Gollin to bring down at least one of the many diploma mills currently operating, St. Regis. The people running the operation are now currently in jail (on charges of mail trafficking and bribing and whatnot), and Gollin is pushing legislation to make it harder to set up operations like this.
Gollin keeps a looooong page on Information resources concerning unaccredited degree-granting institutions with an enormous collection of links and some tools for investigating fake degrees.
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