ENSURING 28:115ng EDUCATIONAL Student Loan LAW INTEGRITY Borr?wer Assi?tance lO STEPS TO IMPROVE STATE OVERSIGHT OF FOR-PROFIT SCHOOLS Copyright 2014, National Consumer Law Center, Inc. GOVERNMENT INVESTIGATIONS AND LAWSUITS INVOLVING FOR-PROFIT SCHOOLS1 (2004 MAY 2014) @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 1 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Corinthian AGs from AR, Multi-state 1 2014 Organizational information; tuition, loan Colleges, Inc.2 AZ, CO, CT, HI, Investigation and scholarship information; lead generation ID, IA, KY, MO, activities; enrollment qualifications NC, NE, NM, for students; complaints; accreditation; OR, PA, TN, WA completion and placement statistics; graduate certification and licensing results; student lending activities. ITT Educational AGS from AR, Multi-state 1 2014 Marketing and advertising, recruitment, Services, Inc.4 AZ, CT, ID, IA, Investigation financial aid, academic advising, career KY, MO, NE, NC, services, admissions, licensure exam pass OR, PA, TN and rates, accreditation, student retention, WA graduation rates and job placement rates. Career Education AGs from AR, Multi-state 1 2014 Student-recruitment practices, graduate Corp.6 AZ, CT, ID, IA, Investigation employment statistics, graduate employment KY, MO, NE, NC, certification and licensing results, and OR, WA student lending activities. Education AGs from AZ, Multi-state 1/2014 Practices relating to recruitment, graduate Management AR, CT, ID, IA, Investigation placement statistics, graduate certification Corporation8 KY, MO, NE, NC, and licensing results, and student lending OR, PA, TN, WA9 activities. Ashford University; CA AG Investigation 1 2013 False advertising; false or misleading Bridgepoint statements during telemarketing calls. Education, Inc.11 Heald College; CA AG Lawsuit 10/2013 Inflated and misrepresented job placement Everest Colleges; rates to students and investors, advertised Everest Univ. programs that it does not offer and Online; Everest disciplined call center employees when College Phoenix, they tried to tell prospective students the Inc.; Wyotech; truth; unlawfully used military seals in Corinthian advertising; and inserted unlawful clauses Colleges, Inc.13 into enrollment agreements. Bryman College, CA AG Lawsuit 7/2007 Inflation of placement rates; failure to Everest Colleges, disclose completion rates; overstating Nat?l Inst. of starting salaries of graduates; failure to meet Technology; minimum performance standards. Corinthian Colleges, Inc.15 Corinthian CFPB Civil 4/2012 Unlawful acts or practices relating to Colleges, Inc.18 Investigative advertising, marketing or origination of Demand 12/2013 private student loans. NORA letter states (NORA that CFPB may seek injunctive and monetary letter) relief. 2 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National? Everest Univ. Certificates, Associate, Everest Colleges Online; Everest Bachelor?s and Master?s Everest Univ. Online College Phoenix Degrees Wyotech Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)3 Pending National Yes Associate, Bachelor?s and Master?s Degrees Pending National? Yes Certificate, Associate, Sanford-Brown. Bachelor?s, Master?s and Regional? Doctoral Degrees American InterContinental Univ. Briarcliffe College Colorado Technical Univ. Pending National and regional accreditation Yes Certificates, Associate, at different institutions10 Bachelor?s, Master?s and Doctoral Degrees Pending Regional Yes Associate, Bachelor?s and (WASC Senior College and Master?s Degrees University Commission)12 Pending National? Everest Univ. Certificates, Associate, Everest Colleges Everest Univ. Online Wyotech Regional? Everest College Phoenix Heald (WASC Senior College and University Commission 14 Online; Everest College Phoenix Bachelor?s, and Master?s Degrees Judgment providing for: (1) $4.3 in restitution; (2) $1.5 in private loan credits; (3) $700,00 for costs, fees, and Unfair Competiion Fund; and (4) injunctive relief.16 National? Everest Colleges and Bryman Colleges (now all Everest Colleges) Nat?l Inst. of Technology (now Wyotech) Certificates, Associate, and Bachelor?s Degrees Pending National? Everest Colleges Everest Univ. Online Wyotech Regional? Everest College Phoenix Heald (WASC Senior College and University Commission 19 Everest Univ. Online; Everest College Phoenix Certificates, Associate, Bachelor?s and Master?s Degrees @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 3 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES ITT Educational CFPB Lawsuit 2 2014 Misleading representations about accreditation Services, Inc.20 and transferability of credits; aggressive tactics to recruit students and convince them to take out student loans; and coercing students to take out private student loans. Westwood College CO AG Lawsuit 3/2012 Misrepresented and inflated job placement (Colorado); Alta rates and graduate employment salaries; Colleges Inc.22 misled students about costs of attendance, the terms of institutional financing, and the quality of academic programs; failure to dislcose that credits were not transferable; misrepresentations regarding teh costs covered by military benefits. Argosy University; CO AG Lawsuit 12/2013 Misrepresented accreditation status of two Education doctoral programs and that Management program would lead to licensure. Corporation25 Apollo Group, Dept. of Investigation 4 2014 Marketing, recruitment, enrollment, financial Inc.28 Education, Office aid, fraud prevention, student retention and of Inspector other issues. General Corinthian Dept. of Review 2/2014 Dept. of Education sought extensive Colleges, Inc.30 Education documentation on job placement rates and other academic data. DeVry Federal Trade Investigation 1 2014 Investigation as to whether entity is violating University; DeVry, Commission section 5 of FTC Act. Seeking documents Inc.32 related to advertising, marketing or sale of secondary or postsecondary educational products or services or educational accreditation products. University of FL AG Investigation 4/2013 Misrepresentations regarding financial aid Phoenix; Apollo Group, Inc. 34 and unfair and deceptive practices regarding recruitment, enrollment, placement. 4 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National? Yes Associate, Bachelor?s and ITT Tech Regional?Daniel Master?s Degrees Webster College Consent Judgment National Yes Diplomas, Associate and providing for: (ACICS or Bachelor?s Degrees (1) $2.5 million in credits for outstanding APEX accounts; (2) refunds of finance charges for some APEX accounts; (3) $2 million for penalties, restitution, costs and fees; and (4) injunctive relief.23 Consent Judgment Regional No Associate, Bachelor?s, providing for: (WASC, Senior College and Master?s, and Doctoral (1) injunctive relief; University Commission)27 Degrees (2) payment of $3.3 million ($2.870 million in restitution; $500,000 for restitution, attorney fees and costs, consumer education and/or future enforcement at state?s discretion; and $1 million in civil penalties).26 Pending Regional Yes Certificates, Associate, Bachelor?s, Master?s and Doctoral Degrees Pending National? Yes Certificates, Associate, Everest Colleges Everest Bachelor?s and Master?s Univ. Online Wyotech Degrees Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)31 Pending Regional Yes Associate, Bachelor?s and Master?s Degrees Pending Regional Yes Certificates, Associate, Bachelor?s, Master?s and Doctoral Degrees @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 5 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Sanford-Brown FL AG Investigation 11/2010 Possible unfair and deceptive trade practices Institute; Career and misrepresentations regarding business Education Corp.36 practices. Concorde Career FL AG Investigation 11 2010 Misrepresentations regarding financial aid Institute; Concorde and unfair/deceptive acts re recruitment, Career Colleges, enrollment and placement. Inc.38 Argosy University; FL AG Investigation 10/2010 Potential misrepresentations in recruitment, Education financial aid and other areas. Management Corporation40 Keiser University, FL AG Investigation 10/ 2012 Misleading or inaccurate information in areas Everglades such as costs, accreditation, transferability of University, Keiser credits and federal student loan terms. Career College; Everglades College, Inc. Bar Education, Inc.42 Kaplan University; FL AG Investigation 10/ 2012 Misrepresentations regarding financial aid; Kaplan, Inc. unfair/ deceptive practices re recruitment, (a subsidiary of enrollment, placement and graduation rates. Graham Holdings Co.)44 MedVance Institute FL AG Investigation 6/2012 Misrepresentations regarding financial (now Fortis College aid, high pressure sales techniques, and or Fortis Institute); unfair practices in recruiting, enrollment, KIMC Investments, accreditation, job placement and graduation Inc. (now owned rates.47 by Educational Affiliates, Inc.)46 Ashford University; IA AG Investigation 5/2014 Telemarketers made misleading statements Bridgepoint and used high pressure sales tactics and Education, Inc.50 emotionally charged appeals to pressure prospective students to enroll in on-line programs; misrepresented that education degree would allow graduates to become classroom teachers when many graduates would have to meet additional requirements on a state-by-state basis; unfairly imposed a ?technology services fee? on all students after 6 weeks of enrollment and retained fee regardless of how long student remained enrolled; and as a result many students did not complete programs. 6 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National No Certificates, Associate and Bachelor?s Degrees Pending National Yes Certificates and Associate Degrees Pending Regional No Associate, Bachelor?s, (WASC Senior College and Master?s and Doctoral University Commission)41 Degrees Assurance of Voluntary Regional Yes Associate, Bachelor?s, Compliance providing for: Master?s and Doctoral (1) injunctive relief; Degrees (2) retraining of eligible students; (3) $375,000 to scholarship fund; (4) $175,000 in attorneys? fees to AG Pending Regional Yes Certificates, Associate, (HLC and Bachelor?s and Master?s Degrees Assurance of Voluntary National Currently, yes; Diplomas and Associate?s Compliance providing for: (ABHES and at time of AVC, no. Degrees (1) free retraining for eligible students; (2) $600,000 in scholar- ship donations; and (3) voluntary injunctive relief.48 Assurance of Voluntary Regional Yes Associate, Bachelor?s and Compliance provides for: (1) $7.25 million in consumer restitution, fees and costs; and (2) compliance measures. (WASC Senior College and University Commission)51 Master?s Degrees @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 7 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Westwood College IL AG Lawsuit 1/2012 Misrepresented (1) its criminal justice degree (Illinois); Alta program would qualify students for law Colleges Inc.52 enforcement jobs, when in fact it qualify few graduates for such jobs becasue it lacked regional accreditation; (2) that credits from the same program were transferable; (3) that institution had or would obtain regional accreditation; (4) financial aid, including about private student loan financing program. Corinthian IL AG Investigation 12 201155 Misleading enrollees about post-graduation Colleges, Inc.54 career prospects. DeVry University; IL AG Investigation 4/2013 Payment of incentive compensation to DeVry, Inc.57 recruiters. Daymar College; KY AG Lawsuit 7/2011 Deceiving and misleading students about Daymar Learning, textbooks and financial aid, engaging in Inc.59 unlawful restraint on trade, providing false and misleading information to students about transferability of credits. Complaint also alleges that some programs do not meet accreditation standards and that school enrolled students who do not meet admissions criteria. National College; KY AG Investigation 12/2010 Misleading marketing practices. National College of Kentucky, Inc.61 National College; KY AG Lawsuit 9/2011 Providing false, misleading and deceptive National College of information by inflating job placement rates. Kentucky, Inc.63 Spencerian College; KY AG Lawsuit 1 2013 Providing false, misleading and deceptive The Sullivan information about graduation success rates University, Inc.65 and by inflating job placement rates. University of MA AG Investigation 4/2013 Deceptive practices concerning recruitment Phoenix; Apollo Group, Inc.67 and financial aid. 8 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National Yes Diplomas, Associate and (ACICS or Bachelor?s Degrees Pending National? Yes Certificates, Associate, Everest Colleges Everest Bachelor?s and Master?s Univ. Online Wyotech Degrees Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)56 Pending Regional Yes Associate, Bachelor?s and Master?s Degrees Pending National Yes Diplomas, Associate and Bachelor?s Degrees Pending. National Yes Diplomas, Associate, In December 2013, court Bachelor?s and Master?s ordered $1,000/day civil Degrees penalty against school retroactive to July 31, 2013. In addition, court ordered school?s lawyers to pay $10,000 to KY AG. Court said school repeatedly abused legal system to obstruct a valid investigation. Pending National Yes Diplomas, Associate, Bachelor?s and Master?s Degrees Pending National No Diplomas/Certificates and Associate Degrees Pending Regional Yes Certificates, Associate, Bachelor?s, Master?s and Doctoral Degrees @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 9 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Career Education MA AG Investigation 9/2012 Violation of consumer protection laws Corp.69 with respect to marketing and advertising, job placement and student outcomes, recruitment, and financing of education. Everest Institute MA AG Lawsuit 4/2014 Allegations of deceptive marketing, (Massachusetts high pressure enrollment tactics and campuses); misrepresentations regarding employment Corinthian opportunities, graduate earnings, transfer- Colleges, Inc.71 ability of credits, availability of externships, nature and availability of financial aid, nature and quality of programs, and steering students into subprime loan program. DeVry University; MA AG Investigation 4/2013 False statements relating to state student DeVry, Inc.73 loans, guarantees, and grants. New England MA AG Investigation 1/2013 Marketing, recruiting, and financing Institute of practices. Art; Education Management Corporation75 ITT Educational MA AG Investigation 10/2012 Requested documents related to financial aid, Services, Inc.77 recruitment, career services, marketing and advertising, retention and graduation rates. Kaplan Career MA AG Investigation 5/2011 Recruitment of students and financing of Institute; Kaplan, education. Inc. (a subsidiary of Graham Holdings Co.)79 Sullivan MA AG Lawsuit 10/ 2013 Deceived and misled the public and Cogliano Training Centers; Sullivan Cogliano Training Centers, Inc.81 prospective students: Misrepresented: the scope, nature, character, and length of its programs; the success of its students in obtaining jobs in the students? field of study; the employment opportunities available in students? field of study; the assistance school provided in obtaining employment in students? field of study? the availability of internships, together with the training provided by and employment opportunities accompanying internships; and the cost of certification tests taken by students. Also, misrepresentations to accreditor and to state oversight agency. 10 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National? Yes Certificates, Associate, Sanford-Brown. Bachelor?s, Master?s and Regional? Doctoral Degrees AIU Briarcliffe College CTU Pending National Yes Associate, Bachelor?s and Master?s Degrees Pending Regional Yes Associate, Bachelor?s and Master?s Degrees Pending Regional No Certificates, Associate and Bachelor?s Degrees Pending National Yes Associate, Bachelor?s and MBA Degrees Pending Each Kaplan Career Institute is Yes Diplomas and Associate nationally accredited by ACCSC, Degrees ACICS or COE80 Final Judgment by Consent National No Certificates which provided for: (COE) 1) Injunctive relief (including shut down of 2 programs); and 2) Payment of $425,000.82 @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 11 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES American Career MA AG Lawsuit 11/2013 Falsified documents (enrollment records, Institute The attendance records, and student grades) Career Institute, and forged student signatures to maintain LLC83 accreditation; enrolled students who did not meet minimum qualifications (students who did not have a high school degree or students who had a criminal record that would prevent them from obtaining employment in the fields being studied); misrepresented graduate job placement rates; and failed to provide students the education for which they incurred significant debts (failed to provide course materials students paid for; not providing skills training necessary for externships/employment); failed to provide refunds upon school closure. Universal Technical MA AG Investigation 12/2012 False claims submitted to the state for student Institute; Universal loans, guarantees. Technical Institute, Inc.84 Corinthian MN AG Investigation 7/2013 Potential issues related to financial aid, Colleges, Inc.86 admissions, students, and other areas. Herzing University; MN AG Investigation 11 2013 Misrepresentations regarding programmatic Herzing, Inc.88 accreditation of Associate in Applied Science in Clinical Medical Assisting Program; misrepresentation that same program would qualify graduates to take private certification exam required for employment. Ashford University; NC AG Investigation 10/2011 Whether business practices complied with Bridgepoint consumer protection laws. Education, Inc.90 Kaplan College NC AG and NC Investigation 1 2012 Allegations that students were misled about (Charlotte, NC Community whether Dental Assistant Program was campus); Kaplan, College System accredited. Inc. (a subsidiary of Graham Holdings Co.)92 12 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National No Certificates (ACCET) Pending National No Certificates Pending National? Yes Certificates, Associate, Everest Colleges Everest Bachelor?s and Master?s Univ. Online Wyotech Degrees Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)87 Assurance of Regional Accreditation Yes Certificates, Associate and Discontinuance Bachelor?s Degrees providing for: (1) Injunctive relief; and (2) option to obtain full refund for eligible students. Pending Regional Yes Associate, Bachelor?s and (WASC Senior College and Master?s Degrees University Commission)91 Withdrawal of license National No Certificates and Associate?s for Charlotte, NC Dental Degrees Assistant Program @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 13 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Breckenridge NM AG Lawsuit 2/2014 Lack of accreditation for nursing program. School of Misleading students regarding transferability Nursing and of credits. Health Sciences (Albuquerque); ITT Educational Services, Inc.94 Ashford University; NY AG Investigation 5/2011 Misrepresentations as to ability to find jobs Bridgepoint for students, the quality of instruction, the Education, Inc.96 cost of attending, and accreditation, among other things. Sanford-Brown NY AG Lawsuit 8/2013 Inflated placement rates; mischaracterized Institute; American employment as ?in field? or ?related field? InterContinental placement; counted first day verification of Univ. employment as placement (even for single- Briarcliffe College; day health fairs); failure to disclose lack of Colorado Technical programmatic accreditation required to Univ. Career meet certification or licensure requirement Education Corp.98 for employment; and failure to disclose non- transferability of credits. Art Institute NY AG Investigation 8/ 2011 Subpoena related to compensation of of New York admissions representatives and recruiting (Education activities. Management?s only school located in New York); Education Management Corporation100 Corinthian OR AG Investigation 8/ 2011 Requested information and documents Colleges, Inc.102 regarding advertising, compensation, training and evaluations of admissions personnel, job opportunities and placement of graduates, students complaints, and other matters. Apollo Group, SEC Enforcement 4/2012 Requested documents and information Inc.104 Inquiry relating to certain stock sales by company insiders. Corinthian SEC Investigation 6/2013 Subpoena sought information relating Colleges, Inc.106 to student information in the areas of recruitment, attendance, completion, placement, defaults on federal loans, as well as compliance with the US. Dept. of Educ.?s rules. 14 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National Yes Associate Degrees Pending Regional Yes Associate, Bachelor?s and (WASC Senior College and Master?s Degrees University Commission 97 Assurance of Discon? National? Briarcliffe College; Certificate, Associate and tinuance providing for: Sanford-Brown. CTU Bachelor?s Degrees?Sanford- (1) injunctive relief; $9.25 Regional? Brown Inst.; Briarcliffe million restitution; $1 AIU Briarcliffe College College; Associate?s, million civil penalty CTU Bachelor?s and Master?s Degrees?AIU; Associate, Bachelor?s, Master?s and Doctoral Degrees?CTU Pending National No Associate Degrees Pending National? Yes Certificates, Associate, Everest Colleges Everest Bachelor?s and Master?s Univ. Online Wyotech Degrees Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)103 Pending Regional Yes Certificates, Associate, Bachelor?s, Master?s and Doctoral Degrees Pending National? Yes Associate, Bachelor?s and Everest Colleges Everest Univ. Online Wyotech Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)107 Master?s Degrees108 @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 15 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES ITT Educational SEC Investigation 2/2013 Subpoena requested documents and Services, Inc.109 communications relating to agreements entered into, in 2009 and 2010, with unaffiliated third parties to help students pay for cost of education through private student loan programs. University of US. Dept. of Ed Gov Review 9/ 2004 Paying incentive compensation to recruiters. Phoenix; Apollo Group, Inc.111 Westwood College; US. Dept. of Lawsuit 4/2009 Alleged violations of Consumer Fraud Alta Colleges Inc.113 Justice and Business Practices Act. Misleading prospective students that its criminal justice degree program qualifies them for law enforcement jobs. American US. Dept. of Lawsuit 5/2013 Made short-term private student loans that Commercial Justice ACC repaid with federal Title IV funds to College; American artificially inflate the amount of private Commercial funding counted for purposes of the 90/10 Colleges Inc.115 Rule. The short-term loans at issue were not sought or obtained by students on their own; rather, school orchestrated the loans for the sole purpose of manipulating its 90/ 10 Rule calculations. University of US. Dept. of Lawsuit 12/2009 Paying incentive compensation to recruiters. Phoenix; Apollo Justice Group, Inc.117 ATI Career US. Dept. of Lawsuit 8/2013 Misrepresentation of job place- Training Center; Justice ment rates; false certification of program and ATI Enterprises student eligibility for Dept. of Ed. financial Inc.119 aid; employees engaged in fraudulent practices to induce students to enroll and maintain their enrollment in school. National College; US. Dept. of Lawsuit 5/ 2012 False Claims Act case. Knowingly violated National College of Justice accreditor?s requirement to provide adequate Kentucky, Inc.121 consultation between team members and faculty by requiring faculty to sign Confidentiality and Non-Disparagement Agreement. Intimidated faculty to prevent dissemination of truthful information in order to maintain accreditation and receive federal funds. Presented false record or statement to federal government to get false or fraudulent claim paid. 16 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National Yes Associate, Bachelor?s and MBA Degrees $9.8 million settlement. Regional Yes Certificates, Associate, Bachelor?s, Master?s and Doctoral Degrees Settlement provided for National Yes Diplomas, Associate and payment of $7 million to (ACICS or Bachelor?s Degrees U.S. Settlement providing for National No Certificates (1) payment of $1 million to (2) possible payment of additionall $1.5 million under contingency clause in settlement. Settlement of $67.5 Regional Yes Certificates, Associate, million. Bachelor?s, Master?s and Doctoral Degrees Settlement provided for National No Certificates and Associate following payments from (ACCSC) Degrees120 letters of credit: (1) $3.7 million dollars to US. government; and (2) $2 million in student loan refunds. Pending National Yes Diplomas, Associate, Bachelor?s and Master?s Degrees @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 17 Note: Chart is organized alphabetically by government agency. GOVERNMENT INVESTIGATION OWNERS AGENCY OR DATE ALLEGATIONS OR ISSUES Stevens-Henager US. Dept. of Lawsuit 4/2014 Paying illegal compensation to recruiters for College; Starting Justice student enrollments.124 in 1 2013, for- profit schools owned by Center for Excellence in Higher Education (nonprofit org)123 Everest Institute US. Dept. of Investigation 4/2011 Employment and placement rates; attendance (Jonesboro, Justice and Dept. procedures. Corinthian of Education Colleges, Inc.126 Education US Govt. AGs Lawsuit 4/2011 Incentive compensation paid to recruiters Management from FL, based upon student enrollment numbers. Corporation128 ILCorinthian WI AG Investigation 1/2013 Investigation of recruitment practices and Colleges, Inc.130 student borrowing. 18 I Ensuring Educational Integrity, In Their Own Words @2014 National Consumer Law Center SCHOOLS OUTCOME OR OFFER PENDING ACCREDITOR DISTANCE (AS OF JUNE 1, 2014) (IF ANY) CREDENTIALS OFFERED Pending National Yes Associate, Bachelor?s and Master?s Degrees Pending National No Certificates Claims based on compen- National and regional accreditation Yes Certificates, Associate, sation plan as written at different institutions129 Bachelor?s, Master?s, and dismissed; claims based Doctoral Degrees on compensation plan as implemented pending. Pending National? Yes Certificates, Associate, Everest Colleges Everest Bachelor?s and Master?s Univ. Online Wyotech Degrees Regional? Everest College Phoenix Heald (WASC Senior College and University Commission)131 @2014 National Consumer Law Center Ensuring Educational Integrity, In Their Own Words I 19 Notes 1 This chart is a survey of government actions against and investigations of for-profit schools based on media reports, school announcements, or publicly available information from government agencies or courts. It is not a complete list of all government actions or investigations initiated between 2004 and 2014. 2 Corinthian Colleges, Inc., SEC Form 8-K (Jan. 27, 2014); Corinthian Colleges, Inc., ?Corinthian Colleges Reports FY 2014 Third Quarter Results? (May 6,2014). All footnotes apply to the information in the row following the first footnote, up until the next footnote. 3 4John Lauerman, ?For-Profit Colleges Face New Wave of State Investigations,? (Jan. 29, 2014). 5 6 Oliver Staley, ?Career Education Under Inquiry From 12 Attorneys General,? (Jan. 27, 2014). 7 coloradotech.edu. 8 Education Management Corporation, SEC Form 8-K (Jan. 24, 2014). 9 Eric Kelderman, ?State Attorneys General Open New Investigation Into For-Profit Colleges,? (Jan. 28, 2014). 10 11 Nick DeSantis, ?Calif. Attorney General Investigates Bridgepoint Education Inc.,? (Jan. 14, 2013). 12 13 Complaint for Civil Penalties, Permanent Injunction, and Other Equitable Relief, People of the State of California v. Corinthian Colleges, Inc., et al.; California Superior Court, San Francisco County, Case No. CGC-13-534793 (Oct. 10, 2013). 14 15 Complaint, People of the State of California v. Corinthian Colleges, Inc., et al., Superior Court for the State of California, Los Angeles County, No. BC 374999 (July 31, 2007). 16 Final Judgment, People of the State of California v. Corinthian Colleges, Inc., et al., Superior Court for the State of Cali- fornia, Los Angeles County, No. BC 374999 (July 31, 2007). 17 18 Corinthian Colleges, SEC Form 8-K (Jan. 27, 2014). 19 20 Complaint, Consumer Financial Protection Bureau vs. ITT Educational Services, Inc., U.S.D.C., Southern District of Indi- ana, Case No. 1:14-cv-292 (Feb. 26, 2014). 21 programs; 22 Complaint, State of Colorado, ex. rel. John W. Suthers, Attorney General v. Alta Colleges, Inc., et al., District Court, Denver City and County (Mar. 14, 2012). 23 Final Consent Judgment, State of Colorado, ex. rel. John W. Suthers, Attorney General v. Alta Colleges, Inc., et al., Dis- trict Court, Denver City and County (Mar. 14, 2012). 24 25 Press Release, Colorado Dep?t of Law, ?Attorney General Suthers Announces Consumer Protection Settlement with Argosy University? (Dec. 5, 2013). 26 Final Consent Judgment, State of Colo. v. Educ. Management Corp., Argosy Educ. Group, Inc. (Dec. 2013) 27 28 John Lauerman, ?Apollo Falls as Education Department Demands Records,? (Apr. 1, 2014). 29 30 Chris Kirkham, ?Feds Probe For-Profit College Accused of Creating Fal