Career Education Corp Former Student Investigation

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Category: Education

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Career Education Corp Former Student Investigation Reviews

ShareholdersFoundation December 16, 2010
Possible Encouraged Fraud in Deceptive and Questionable Marketing Practices
An investigation on behalf of former and current students of Career Education Corp. (NASDAQ:CECO) including students at its American InterContinental University, Briarcliffe College, Brooks Institute, Brown College, California Culinary Academy, Collins College, Colorado Technical University, Gibbs College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford Brown College, was announced in connection with the report by the Government Accountability Office with the title "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices."

If you are a former or current student of Career Education Corp. (NASDAQ:CECO) including students at its American InterContinental University, Briarcliffe College, Brooks Institute, Brown College, California Culinary Academy, Collins College, Colorado Technical University, Gibbs College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford Brown College, who experienced any fraud, wrongdoing, deceptive and questionable marketing practices, or had any school loan issues, , or if you have information relating to the investigation including also former employees or whistleblowers, you have options and you should contact the Shareholders Foundation, Inc by email [email protected] or call +1(858) 779 - 1554

Career Education Corp. offers education through its American InterContinental University, Briarcliffe College, Brooks Institute, Brown College, California Culinary Academy, Collins College, Colorado Technical University, Gibbs College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford Brown College Career Education Corp. faces also an investigation on behalf of current long term investor in Career Education Corp. (NASDAQ:CECO) concerning whether certain officers and directors breached their fiduciary duties in regards to the findings of a report from the U.S. Government Accountability Office. The report with the title “Undercover Testing Finds Colleges Encouraged Fraud and Engaged in Deceptive and Questionable Marketing Practices” detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff.

On August 4, 2010, the Senate Health, Education, Labor, and Pensions Committee conducted a hearing on for-profit education firms, where Government Accountability Office representative, George Kutz, presented the findings of report GAO-10-948T, "For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices." The report detailed undercover investigations into 15 for-profit schools that uncovered misconduct by school staff. According to this GAO study, the college personnel at schools owned by Education Management Corp. may have encouraged applicants to falsify their financial aid forms to qualify for federal aid and pressured applicants to sign a contract for enrollment prior to allowing them to speak to a financial advisor.

According to the investigation by a law firm former and current students of Career Education Corp. (NASDAQ:CECO) including students at its American InterContinental University, Briarcliffe College, Brooks Institute, Brown College, California Culinary Academy, Collins College, Colorado Technical University, Gibbs College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford Brown College may have material information concerning those allegations and may be eligible to file a complaint for allegedly misleading students.

Also whistleblowers may according to the law firm be able to assist or file their own complaint. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide “original information” leading to a successful SEC enforcement, so the law firm. Whistleblowers may remain completely anonymous and work with the SEC through an attorney. Under the new law, so the investigation, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC.

Recently the Attorney General of Florida Bill McCollum launched an investigation into some for-profit education companies. On October 19, 2010, the Wall Street Journal reported that Florida Attorney General's office has launched an investigation into five for-profit colleges, including four publicly traded schools, seeking information on potential misrepresentations in financial aid, recruitment and other areas. The state is reportedly looking into allegations at Washington Post Co.'s (WPO) Kaplan Inc.--including its Kaplan University, Kaplan Educational Centers and Kaplan College units--and at Education Management Corp.'s (EDMC) Argosy University, Apollo Group Inc.'s (APOL) University of Phoenix; Corinthian Colleges Inc.'s (COCO) Everest College and privately held MedVance Institute.

Those who are former or current students of Career Education Corp. (NASDAQ:CECO) including students at its American InterContinental University, Briarcliffe College, Brooks Institute, Brown College, California Culinary Academy, Collins College, Colorado Technical University, Gibbs College, Harrington College of Design, International Academy of Design & Technology, Le Cordon Bleu, Missouri College, and Sanford Brown College, who experienced any fraud, wrongdoing, deceptive and questionable marketing practices, or had any school loan issues, , or those who have information relating to the investigation including also former employees or whistleblowers, have options and should contact the Shareholders Foundation, Inc by email [email protected] or call +1(858) 779 - 1554

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