Tag Archives: For-Profit Colleges


For-Profit College’s Apparent Closure in California Surprises Students

A for-profit college that enrolls about 800 students on three campuses in California has apparently closed its doors after losing its accreditation, according to reports by The Press-Enterprise of Riverside, Calif., and the Los Angeles Times.

A spokesman for the California Bureau of Private Postsecondary Education told The Press-Enterprise that the U.S. Department of Education had placed Career Colleges of America, which focuses on medical training, on “cash management” status, signaling financi…


Consumer-Finance Agency May Take Action Against Corinthian Colleges

The Consumer Financial Protection Bureau has informed Corinthian Colleges Inc., a for-profit provider of higher education, that the bureau’s enforcement office may recommend that the agency take legal action against the company for possible violations of federal law.

Corinthian said on Monday in a corporate filing with the U.S. Securities and Exchange Commission that it had received a letter stating that the CFPB’s enforcement office expects to allege that the company violated the Consumer Fin…


Consumer-Protection Agency May Act Against ITT Educational Services

The Consumer Financial Protection Bureau has notified ITT Educational Services that the bureau’s enforcement office is considering recommending that the federal agency take legal action against the for-profit-college company, ITT said on Friday in a filing with the U.S. Securities and Exchange Commission.

ITT said it had received a letter stating that the CFPB’s enforcement staff expects to allege that the company violated federal laws such as the Dodd-Frank Wall Street Reform and Consumer Pro…


Negotiators Offer Proposals Ahead of 2nd Session on ‘Gainful Employment’ Rule

The U.S. Department of Education has posted online a series of proposals submitted by negotiators who are seeking to shape its revised “gainful employment” rule, ahead of a negotiating panel’s second formal gathering, set to take place this month.

A federal judge last year struck down the department’s previous version of the controversial rule after the Association of Private Sector Colleges and Universities, the main trade group representing for-profit colleges, challenged the regulation in cou…


Accused of Not Disclosing Conviction, CEO of For-Profit College Resigns

Ernesto Perez has resigned as president and chief executive officer of Dade Medical College, a for-profit institution in Florida, less than a week after prosecutors charged him with perjury and providing false information through a sworn statement, according to reports by The Miami Herald and the South Florida Business Journal.

The charges against Mr. Perez stemmed from accusations that he had failed to disclose his criminal history on a government questionnaire he filled out when he was appoint…


Ex-Dean Wins Nearly $400,000 in Whistle-Blower Suit Against Globe U.

A Minnesota jury has ordered Globe University, a for-profit college with campuses in Minnesota, Wisconsin, and South Dakota, to pay nearly $400,000 to a former dean who asserted in a lawsuit that she was fired for accusing the institution of misleading students, The Star Tribune has reported.

Heidi Weber sued the institution under a state whistle-blower law after she was fired as dean of the medical-assistant program, in 2011. She claimed that the institution used questionable tactics to mislead…


For-Profit College Settles Class-Action Suit Over Minority Bias

A federal judge has approved a $5-million settlement in a class-action lawsuit accusing a for-profit health-and-technology college in Virginia of singling out needy minority students for enrollment and giving them worthless credentials, according to the Richmond Times-Dispatch.

The lawsuit accused the Richmond School of Health and Technology, now known as Chester Career College, of practicing a form of “reverse redlining,” deliberately recruiting and enrolling black students from low-income back…


Appeals Court Revives Whistle-Blower Lawsuit Against ITT Educational Services

A federal appeals court has revived a former employee’s whistle-blower lawsuit against ITT Educational Services Inc. that accused the for-profit-college company of submitting false claims to the U.S. Department of Education in order to receive student-aid money.

A federal judge in Indiana had dismissed the lawsuit, saying the court lacked jurisdiction over the case after finding that the employee’s allegations had already been disclosed publicly and that the employee was not the original sourc…


Chancellor U., a For-Profit College in Ohio, Will Close Its Doors

Chancellor University, a for-profit college based in Seven Hills, Ohio, that once faced extinction when it was known as the nonprofit Myers University, announced on Monday that it would close, according to The Plain Dealer of Cleveland.

The entrepreneur Michael Clifford bought Myers out of bankruptcy in 2008, after the institution fell on hard times, transforming it into a for-profit institution that offered most courses online. Chancellor recruited Jack Welch, a former chief executive of Genera…


For-Profit College to Pay U.S. at Least $1-Million to Settle Whistle-Blower Suit

American Commercial Colleges Inc. has agreed to pay the United States at least $1-million over the next five years to settle a whistle-blower lawsuit accusing it of defrauding the government, the U.S. Department of Justice announced on Friday.

The lawsuit against the Texas-based chain of for-profit colleges was filed by two of its former campus directors, in 2010. The Justice Department then said last February that it would intervene in the case. The lawsuit accused the institution of orchestrat…