limited ?States of Amenica Consumer Financial Promotion Bureau woo atlvo Consumer Financial Protection Bureau To Accmditing Couns?l for independent This demand is issuscl puzsuant to Section 1952 of the Consumer Financial Cone es and Schools Act of ENG-anti 1'2 GER. Part: ?1080 to determine whether there isor 750 Fist Street NE Suite 980 ?esta a Violation of any laws enforced by the Bureauof Comumo: ?nancial . Washington, no 200024223 I Protcctiom. Action Required {almanac all ?lm zlgi?gily} Agpear and Provide Oral Tit-stimme lmcaticm of Datoand?llimo of luvcstigatiitmal Consumer Financial Protection 1381162313 1 91/223013 am} 9/23/2015 at 9:30 All?: 1625 I ?i??umau Investigators ?Washin ton LDC-20006 - ., . . Bewarmn Konop, [3 Product: Documents and/or as set forth in the attached document, by the: following Slate {Hovide Written Reports and/ or Answers to Ques?oxls, as sei?forth in the attached (locunxent, by thegfoliowing date, 'Noti?cation of Purpose Pursuant to 12 GER. ?108?l5 The purpose of this investigation is to cletemiizze whether any ootity 01: person has engaged or is engaging in unlawful acts and practices in connection with accrediting for?pro?t of sections 1031 and 1036 of the Consumer Financial Protection Act 0152330, 12 U.S.C. 5531, 5536', or any othox Federal consumer ?nancial protection law. The purpose of thisizwestigation is also to detemline whether 'Burem action to obtain legal or equitable roliofwould ho in the pablic: interest. Custodian Deputy Custodian Bureau Counsel gaff?? Paul Elwlioh?iricix 5mm?; . . f, liensum?rl'liimncial Ii?mmtrion ?urmu (3 2111113} .l?xQ?Qp W313 Ci Sum, NW \Va?lsing?ou, 20552 . I Digitalfysigned byleffrey-PaolEhrEich Bate Issued Slgnatute Us DN:cnm?effrey?Paul 03 25 /2015 Date: 201 5.03.25 ma Name Titi?e Jeffreyai?aul Ehrlich, 961511131? Enforcement Director Sax-Vice Rightto Regulatory ?nfmcement Fairness ?2711c delivory of this demand toyou by my: motho? The (TWRB is Fair mgulatory (:n?nocmom. if you are a small under "prescribecl by the: {Ionwmor Firmncia} Ptmection. :3?ka Small Businesxzx dmi?igtraticm Standards, you the Small Busti?oss of 2010, ?2,2 service. 1530:: fail Administtatloo?g,National. at LSSESQREE (29888-734?3243303? {0 6013?}? With {111,3 de?l?n??s th?ll?urezlt? may S?ek ?1 rcgarcling/the fairness of the compliancoand enforcement court orer mooning? your comp mace of theagmay. 301,1 should umderstand, howeveg that the Nanonal Ombudsman cannot change, groggy delay a fcdoml agency actiom Travel Expenses Request 21 travel voucher to claim {o Radumion which you are. as a witness before the Bureau 'i'his demand does not require. approval by 0MB under the I'Dapemmrk Reduction Act of pursuant to Section 1052 of the Consumer Fianin} ?1983. Protection Act of 20103 ?12 (1811 5562. CIVIL INVESTIGATIVE DEMAND FOR ANSWERS TO INTERROGATORIES AND ORAL TESTIMONY I. Requests. 1. Identify all post?secondary educational institutions that the Company has accredited since January 1, 2010. 2. Identify all individuals af?liated with the Company who conducted any accreditation reviews since January 1, 2010 of the following schools: H. . senses-Hav- Everest College Bremerton Everest College -- Colorado Springs Everest College Henderson Everest College Newport News Everest College Portland Everest College San Bernardino Everest College Seattle Everest College Springfield Everest College Thornton Everest College West Valley City Everest Institute Pittsburgh Everest Institute Rochester . Everest University North Orlando Everest University Online Tampa FastTrain College Jacksonville FastTrain College Miami Fast?l?rain College Plantation FastTrain College Tampa Technical Institute Indianapolis ITT Technical Institute - Spokane Valley Westwood College - O'Hare Airport II. The Bureau will take sworn oral testimony from a Company representative on the following topics: 1. The Company?s policies, procedures, and practices relating to the accreditation of Everest College. 2. The Company?s policies, procedures, and practices relating to the accreditation of Everest Institute. 3. The Company?s policies, procedures, and practices relating to the accreditation of Everest University. 4. The Company?s policies, procedures, and practices relating to the accreditation of Everest University Online. 5. The Company?s policies, procedures, and practices relating to the accreditation of Fast Train College. 6. The Company?s policies, procedures, and practices relating to the accreditation of ITT Technical Institute. 7. The Company?s policies, procedures, and practices relating to the accreditation of Westwood College. De?nitions. A. means the Civil Investigative Demand, including the Requests, De?nitions, and Instructions. B. or ?Bureau? means the Bureau of Consumer Financial Protection. C. ?Company? or ?you? or ?your? means Accrediting Counsel for Independent Colleges and Schools, ACICS, any successor in interest and includes parent companies, partially owned subsidiaries, unincorporated divisions, joint ventures, operations under ass-amass names, and affiliates, and all principals, directors, of?cers, owners, employees, agents, representatives, contaminants, attorneys, raseon'ntants, independent contractors, and other pertains wari?n?g?far or on 0f the?fsageing, D. ?Deputy Enforcement Director? refers to a Deputy Assistant Director of the Of?ce of Enforcement. E. ?Document? means any written matter of every type and description, including electronically stored information. ?Document? includes any non?identical copy (such as a draft or annotated copy) of another document. F. ?Electronically Stored Information,? or means the complete original and any non-identical copy (whether different from the original because of notations, different metadata, or otherwise) of any electronically created or stored information, including but not limited to e?mail, instant messaging, videoconferencing, SMS, MMS, or other text messaging, and other electronic correspondence (whether active, archived, unsent, or in a sent or deleted-items folder), word?processing ?les, spreadsheets, databases, unorganized data, document metadata, presentation ?les, and sound recordings, regardless of how or where the information is stored, including if it is on a mobile device. G. ?Enforcement Director? refers to the Assistant Director of the Of?ce of Enforcement. H. ?Identify? means to provide: for natural persons, their name, title or position, present business af?liation, present business address, e?mail address, and telephone number, or if a present business af?liation or present business address is not known, the last known business address, home address, e?mail address, and telephone number; and for businesses or other organizations, the name, address, identities of of?cers, directors, or managers of the business or organization, and contact persons with e-mail addresses and telephone numbers, where applicable. 1. ?Person? means an individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity. Instructions. A. Sharing of Information: This CID relates to a nonpublic, law?enforcement investigation being conducted by the Bureau. The Bureau may make its ?les available to other civil and criminal federal, state, or local law?enforcement agencies under 12 C.F.R. and Information you provide may be used in any civil or criminal proceeding by the Bureau or other agencies. As stated in 12 C.F.R. 1080.14, information you provide in response to this CID is subject to the requirements and procedures relating to the disclosure of records and information set forth in 12 C.F.R. pt. 1070. B. Meet and Confer: As stated in 12 C.F.R. you must contact Enforcement Attorney Benjamin Konop at (202) 435-7265 as soon as possible to schedule a meeting (telephonic or in person) to discuss your response to the CID. The meeting must be held within 10 calendar days after you receive this CID or before the deadline for ?ling a petition to modify or set aside the CID, whichever is earlier. C. Applicable Period for Responsive Materials: Unless otherwise directed, the applicable period for the request is from January 1, 2010 until the date of this CID. D. Privilege Claims: If any material responsive to this CID is withheld on the grounds of privilege, you must make the privilege claim no later than the date set for the production of the material. As stated in 12 C.F.R. any such claim must include a schedule of the documents, information, or tangible things withheld that states, for each: 1. its type, speci?c subject matter, and date; 2. the names, addresses, positions, and organizations of all authors and direct or indirect recipients; 3. the speci?c grounds for claiming the privilege; 4. the request to which the privileged document, information, or thing is responsive; and 5. its Bates number or range. In addition, the person who submits the schedule and the attorney stating the grounds for the privilege must sign it. A person Withholding material solely based on a claim of privilege must comply with the requirements of 12 CF. R. 1080.8 rather than ?le a panties-fer anari?3erirsedifying.cr setting asidezaemand under 12 C.F.R. reassess enciosed Decttment?sbmission Standards for further instructions about producing redacted privileged documents. E. Document Retention: Until you are noti?ed otherwise, you are required to retain all documents and other tangible things that you used or relied on in responding to this CID. In addition, you must retain, and suspend any procedures that may result in the destruction of, documents, information, or tangible things that are in any way relevant to the investigation, as described in the Noti?cation of Purpose. You are required to prevent the destruction of relevant material irrespective of whether you believe such material is protected from future disclosure or discovery by privilege or otherwise. See 18 U.S.C. 1505, 1519. F. Modi?cation Requests: If you believe that the scope of the search or response required by this CID can be narrowed consistent with the Bureau?s need for documents or information, you are encouraged to discuss such possible modi?cations, including modi?cations of the requirements of these instructions, with Enforcement Attorney Benjamin Konop at (202) 435-7265. Modi?cations must be agreed to in writing by the Enforcement Director or a Deputy Enforcement Director. 12 C.F.R. G. Petition for Order Modifying or Setting Aside Demand: Under 12 U.S.C. 5562(f) and 12 C.F.R. you may petition the Bureau for an order modifying or setting aside this CID. To ?le a petition, you must send it by e-mail to the Bureau?s ExecutiveSecretary at are. copying the Enforcement Director at within 20 1e dar days of service of the CID or, if the return date is less than 20 calendar days after service, before the return date. The subject line of the e-mail must say ?Petition to Modify or Set Aside Civil Investigative Demand.? If a sergaeat for confidential treatment is ?ing you. redactiad?l??biic petition in addition to the unredacted petition. All meat-he swarmed by. showing; offgood cause in light; gaff-applicable statutes, rules; screen mama, mart orders, or are relevant autherity. H. Certi?cation: The person to whom the CID is directed or, if it is directed to an entity; any passer: having 1 as of image and. cireamtaneaa relating to the. production, must certify that thefageapenaa ta: this. CID and misplace- ?ns certification must nemesis on the farm 'inaiadad anaemia or a sworn af?davit. Senna-sf covers; materials and information in your or canteen not limited to documents in the er whim}: 'atterneys, accountants, other agents or canaaitaats, disasters ef?aa rs, anda-enipioyees. J. Document: Production: Bureau encouaages the eleetmnie production of all mataaial pieasegailaw the anclesed De?cnment Submission Standards. All productions sent by U.S. Postal Service should be addressed to: Consumer Financial Protection Bureau 1700 Street, NW Darcie Polzien c/o Erica Satten, SEFL, Of?ce of Enforcement, Room 4058 Washington, DC 20552 All productions sent by FedEx, UPS, or other courier should be addressed to: Consumer Financial Protection Bureau 1625 Street NW Darcie Polzien c/o Erica Satten, SEFL, Of?ce of Enforcement, Room 4058 a Washington, DC 20006 Please preside yon: intended ma? 9 ad aimeduction and any tracking numbe :a:i?ialaiahamgin?nimaamam Attorney Benfamin Konop at "hen agii?ma; and (202) 435?7265. rs by e?mail K. Document Identi?cation: Documents that may be responsive to more than one reassess of? this hasabmined. Instantan- arias, easements mape?aine ?to this CID by an index thatidenti?es: Ci) the firemen]? sagas caste mamas respensivedocument;- aha? sarraapandiag Bates" assailant er mggacnsa?, that person?s documaai; 3nd reassessment? requests to which each damme?tresponds. L. Sensitive Personally Identi?able Information: If any material called for by these requests contains sensitive personally identi?able information, sensitive health information of any individual, or Suspicious Activities Reports, please contact Enforcement Attorney Benjamin Konop at (202) 435-7265 before sending those materials to discuss ways to protect the information during production. You must electronic copies of such materials with software acceptable to the Bureau. When submitting material, you must provide the key, certi?cate, or passcode in a separate communication. For purposes of this CID, sensitive personally identi?able information includes an individual?s Social Security number alone or an individual?s name, address, or phone number in combination with one or more of the following: date of birth, Social Security number, driver?s?license number or other state?identi?cation number, or a foreign country equivalent, passport number, financial?account number, credit?card number, or debit?card number. Sensitive health information includes medical records and other individually identi?able health information relating to the past, present, or future physical or mental health or conditions of an individual, the provision of health care to an individual, or the past, present, or future payment for the provision of health care to an individual. M. Information Identi?cation: Each request for an interrogatory in this CID must be answered separately and fully in writing under oath. All information submitted must clearly and precisely identify the request or requests to which it is responsive. N. Submission of Documents in lieu of Reports or Answers: Documents in existence before your receipt of this CID that contain the information requested in any interrogatory may be submitted as part of or in lieu of an answer to the interrogatory. If you submit documents as part of or in lieu of an answer, you must clearly indicate the speci?ereqnest ts which the sentiments-are responsive, and you must clearly identify the of the responsive, including page, paragraph, and line numbers, as applicable. 0. Declaration Certifying Records of Regularly Conducted Business Activity: Attached is a Declaration Certifying Records of Regularly Conducted Business Activity, which may limit the need to subpoena you to testify at future proceedings to establish the admissibility of documents produced in response to this CID. Please execute this Declaration and provide it with your response. P. Duty to Estimate: If you are unable to answer any interrogatory fully, supply sash infermatien Explain why sash answer is incomplete, the efforts you, ?the misreading}, and the sourse which the-?nspiete answer may be: obtained. If books and records that provide accurate answers are not available, enter best estimates and describe how the estimates were derived, including the sources or bases of such estimates. Estimated datashould be followed by the notation ?est.? If there is no reasonable way to make an estimate, provide an explanation. Q. Procedures Governing Hearing: This CID is issued under section 1052 of the Consumer Financial Protection Act, 12 U.S.C. 5562. The taking of oral testimony pursuant to this CID will be conducted in conformity with that section and 12 C.F.R. 1080.7, and 1080.9. R. Scope of Investigational Hearing: This CID covers information in your possession, custody, or control, including but not limited to documents in the possession, custody, or control of your attorneys, accountants, other agents or consultants, directors, of?cers, and employees. S. Designation of a Witness: This CID requires oral testimony from an entity. Under 12 C.F.R. you must designate one or more officers, directors, or managing agents, or designate other persons who consent to testify on your behalf. The individuals designated must testify about information known or reasonably available to you, and their testimony is binding on you. Your failure to designate a witness competent to testify about the topics described will be considered a failure to comply with this CID.