It seems like this is illegal. If it isn't, you "sign" each application saying the information is true to the best of your knowledge (meaning the school should have your actual GPA), and if the recommender mentioned the GPA you modified, you would look pretty stupid.
I had a friend who went there for a while. She got a lot of crap for it because people said it isn't an accredited university. Not sure if that's true, but it's a good thing to check.