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Government Investigations/Lawsuits of For-Profit Schools

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Government Investigations/Lawsuits of For-Profit Schools NCLC® ensuring NATIONAL CONSUMER educational LAW integrity CENTER ® 10 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 www.nclc.org Ensuring Educational Integrity, In Their Own Words 5 1 Note: Chart is organized alphabetically by government agency. SCHOOLS OUTCOME OR OFFER ONLINE/ SCHOOLS/ GOVERNMENT INVESTIGATION PENDING ACCREDITOR DISTANCE OWNERS AGENCY OR LAWSUIT? DATE ALLEGATIONS OR ISSUES (AS OF JUNE 1, 2014) (IF ANY) PROGRAMS? CREDENTIALS OFFERED Corinthian AGs from AR, Multi-state 1/2014 Organizational information; tuition, loan Pending National— Everest Univ. Certificates, Associate, Colleges, Inc.2 AZ, CO, CT, HI, Investigation and scholarship information; lead generation Everest Colleges (ACCSC); Online; Everest Bachelor’s and Master’s ID, IA, KY, MO, activities; enrollment qualifications Everest Univ. Online (ACICS); College Phoenix Degrees NC, NE, NM, for students; complaints; accreditation; Wyotech (ACCSC); OR, PA, TN, WA completion and placement statistics; graduate Regional— certification and licensing results; student Everest College Phoenix (HLC); lending activities. Heald (WASC Senior College and University Commission)3 ITT Educational AGS from AR, Multi-state 1/2014 Marketing and advertising, recruitment, Pending National (ACICS)5 Yes Associate, Bachelor’s and Services, Inc.4 AZ, CT, ID, IA, Investigation financial aid, academic advising, career Master’s Degrees 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 Pending National— Yes Certificate, Associate, Corp.6 AZ, CT, ID, IA, Investigation employment statistics, graduate employment Sanford-Brown. (ACICS); Bachelor’s, Master’s and KY, MO, NE, NC, certification and licensing results, and Regional— Doctoral Degrees OR, PA,TN, WA student lending activities. American InterContinental Univ. (HLC); Briarcliffe College (MSACS); Colorado Technical Univ. (HLC)7 Education AGs from AZ, Multi-state 1/2014 Practices relating to recruitment, graduate Pending National and regional accreditation Yes Certificates, Associate, Management AR, CT, ID, IA, Investigation placement statistics, graduate certification at different institutions10 Bachelor’s, Master’s and Corporation8 KY, MO, NE, NC, and licensing results, and student lending Doctoral Degrees OR, PA, TN, WA9 activities. Ashford University; CA AG Investigation 1/2013 False advertising; false or misleading Pending Regional Yes Associate, Bachelor’s and Bridgepoint statements during telemarketing calls. (WASC Senior College and Master’s Degrees Education, Inc.11 University Commission)12 Heald College; CA AG Lawsuit 10/2013 Inflated and misrepresented job placement Pending National— Everest Univ. Certificates, Associate, Everest Colleges; rates to students and investors, advertised Everest Colleges (ACCSC); Everest Online; Everest Bachelor’s, and Master’s Everest Univ. programs that it does not offer and Univ. Online (ACICS); Wyotech College Phoenix Degrees Online; Everest disciplined call center employees when (ACCSC); College Phoenix, they tried to tell prospective students the Regional— Inc.; Wyotech; truth; unlawfully used military seals in Everest College Phoenix (HLC); Corinthian advertising; and inserted unlawful clauses Heald (WASC Senior College and Colleges, Inc.13 into enrollment agreements. University Commission)14 Bryman College, CA AG Lawsuit 7/2 0 0 7 Inflation of placement rates; failure to Judgment providing for: National— No Certificates, Associate, and Everest Colleges, disclose completion rates; overstating (1) $4.3 in restitution; Everest Colleges and Bryman Bachelor’s Degrees Nat’l Inst. of starting salaries of graduates; failure to meet (2) $1.5 in private loan Colleges (now all Everest Colleges) Technology; minimum performance standards. credits; (3) $700,00 for (ACCSC); Nat’l Inst. of Technology Corinthian costs, fees, and Unfair (now Wyotech) (ACCSC)17 Colleges, Inc.15 Competiion Fund; and (4) injunctive relief.16 Corinthian CFPB Civil 4/2012 Unlawful acts or practices relating to Pending National— Everest Univ. Certificates, Associate, Colleges, Inc.18 Investigative (CID); advertising, marketing or origination of Everest Colleges (ACCSC); Everest Online; Everest Bachelor’s and Master’s Demand 12/2013 private student loans. NORA letter states Univ. Online (ACICS); Wyotech College Phoenix Degrees (NORA that CFPB may seek injunctive and monetary (ACCSC); letter) relief. Regional— Everest College Phoenix (HLC); Heald (WASC Senior College and University Commission)19 2 5 Ensuring Educational Integrity, In Their Own Words ©2014 National Consumer Law Center www.nclc.org SCHOOLS OUTCOME OR OFFER ONLINE/ SCHOOLS/ GOVERNMENT INVESTIGATION PENDING ACCREDITOR DISTANCE OWNERS AGENCY OR LAWSUIT? DATE ALLEGATIONS OR ISSUES (AS OF JUNE 1, 2014) (IF ANY) PROGRAMS? CREDENTIALS OFFERED Corinthian AGs from AR, Multi-state 1/2014 Organizational information; tuition, loan Pending National— Everest Univ. Certificates, Associate, Colleges, Inc.2 AZ, CO, CT, HI, Investigation and scholarship information; lead generation Everest Colleges (ACCSC); Online; Everest Bachelor’s and Master’s ID, IA, KY, MO, activities; enrollment qualifications Everest Univ. Online (ACICS); College Phoenix Degrees NC, NE, NM, for students; complaints; accreditation; Wyotech (ACCSC); OR, PA, TN, WA completion and placement statistics; graduate Regional— certification and licensing results; student Everest College Phoenix (HLC); lending activities. Heald (WASC Senior College and University Commission)3 ITT Educational AGS from AR, Multi-state 1/2014 Marketing and advertising, recruitment, Pending National (ACICS)5 Yes Associate, Bachelor’s and Services, Inc.4 AZ, CT, ID, IA, Investigation financial aid, academic advising, career Master’s Degrees 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 Pending National— Yes Certificate, Associate, Corp.6 AZ, CT, ID, IA, Investigation employment statistics, graduate employment Sanford-Brown. (ACICS); Bachelor’s, Master’s and KY, MO, NE, NC, certification and licensing results, and Regional— Doctoral Degrees OR, PA,TN, WA student lending activities. American InterContinental Univ. (HLC); Briarcliffe College (MSACS); Colorado Technical Univ. (HLC)7 Education AGs from AZ, Multi-state 1/2014 Practices relating to recruitment, graduate Pending National and regional accreditation Yes Certificates, Associate, Management AR, CT, ID, IA, Investigation placement statistics, graduate certification at different institutions10 Bachelor’s, Master’s and Corporation8 KY, MO, NE, NC, and licensing results, and student lending Doctoral Degrees OR, PA, TN, WA9 activities. Ashford University; CA AG Investigation 1/2013 False advertising; false or misleading Pending Regional Yes Associate, Bachelor’s and Bridgepoint statements during telemarketing calls. (WASC Senior College and Master’s Degrees Education, Inc.11 University Commission)12 Heald College; CA AG Lawsuit 10/2013 Inflated and misrepresented job placement Pending National— Everest Univ. Certificates, Associate, Everest Colleges; rates to students and investors, advertised Everest Colleges (ACCSC); Everest Online; Everest Bachelor’s, and Master’s Everest Univ. programs that it does not offer and Univ. Online (ACICS); Wyotech College Phoenix Degrees Online; Everest disciplined call center employees when (ACCSC); College Phoenix, they tried to tell prospective students the Regional— Inc.; Wyotech; truth; unlawfully used military seals in Everest College Phoenix (HLC); Corinthian advertising; and inserted unlawful clauses Heald (WASC Senior College and Colleges, Inc.13 into enrollment agreements. University Commission)14 Bryman College, CA AG Lawsuit 7/2 0 0 7 Inflation of placement rates; failure to Judgment providing for: National— No Certificates, Associate, and Everest Colleges, disclose completion rates; overstating (1) $4.3 in restitution; Everest Colleges and Bryman Bachelor’s Degrees Nat’l Inst. of starting salaries of graduates; failure to meet (2) $1.5 in private loan Colleges (now all Everest Colleges) Technology; minimum performance standards. credits; (3) $700,00 for (ACCSC); Nat’l Inst. of Technology Corinthian costs, fees, and Unfair (now Wyotech) (ACCSC)17 Colleges, Inc.15 Competiion Fund; and (4) injunctive relief.16 Corinthian CFPB Civil 4/2012 Unlawful acts or practices relating to Pending National— Everest Univ. Certificates, Associate, Colleges, Inc.18 Investigative (CID); advertising, marketing or origination of Everest Colleges (ACCSC); Everest Online; Everest Bachelor’s and Master’s Demand 12/2013 private student loans. NORA letter states Univ. Online (ACICS); Wyotech College Phoenix Degrees (NORA that CFPB may seek injunctive and monetary (ACCSC); letter) relief. Regional— Everest College Phoenix (HLC); Heald (WASC Senior College and University Commission)19 ©2014 National Consumer Law Center www.nclc.org Ensuring Educational Integrity, In Their Own Words 5 3 Note: Chart is organized alphabetically by government agency. SCHOOLS OUTCOME OR OFFER ONLINE/ SCHOOLS/ GOVERNMENT
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