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Career Education Corp Former Student Investigation / Possible Encouraged Fraud in Deceptive and Questionable Marketing Practices

1 United States Review updated:

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 mail@shareholdersfoundation.com or call +[protected]

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 mail@shareholdersfoundation.com or call +[protected]

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Comments

  • Me
      16th of Dec, 2010
    +1 Votes

    I was very alarmed when, while my daughter was registering at everest college, several things caught my eye; first she had to sign a waiver agreeing that any overage in her financial aid was going to be kept by the school. As a student myself, I use the overage to help with things like transportation to and from school. Then I was alarmed that after completing the course you are given a "diploma" not a degree. I later found out that is because the careers in which they offer this "diploma" don't even require any such educational levels, you can actually obtain these jobs without any such training, education, degree, or diploma. These companies do their own training.

  • Dp
      24th of Dec, 2010
    0 Votes

    I just enrolled at one of the schools mentioned in this article and I'm very concerned. I think I'[m going to drop out and take more time to do my research. This is so much time and money and I just don't want to make a mistake I'll regret for the rest of my life.

  • Sk
      28th of Jul, 2011
    0 Votes

    I "graduated" from American Intercontinental University in 2006. The costs were very high. While it was not easy to obtain my Associates in Business, I found that even though I was assured my credits were transferable for a higher degree elsewhere - they were not! I'm still paying off my student loan. I was also told that should anything come up that I could not complete a course that I would be given an incomplete and be able to make it up. When my mother-in-law passed away at the same time that I almost lost my daughter and first grandbaby to medical complications at birthing, I notified my teachers and requested time to complete the course. Why should I not be surprised that I was not given that opportunity? And also question why I was told to lie about being a sophomore when I was not?! No, I would not recommend going to any of CEC's schools!

  • Ce
      2nd of Sep, 2011
    +1 Votes

    CEC - Career Education Corpoartion the company which owns numerous private for-profit colleges is under Federal investigation. Students will suffer. Watch the Youtube video below.

    These are schools owned by CEC:
    IADT - International Academy of Design and Technology
    AIU - American InterContinental University
    Brown College
    CTU - Colorado Technical University - CTU Online
    Brooks Institute
    Le Cordon Bleu
    CCA - California Culinary Academy
    Sanford-Brown College - Sanford-Brown Institute
    Briarcliffe College - Briarcliffe Online
    Missouri College
    Collins College

    Visit my Youtube group and watch the 1min video -- it explains everything.
    http://www.youtube.com/user/CECOAdvocate

  • Fe
      17th of Apr, 2012
    +1 Votes

    At Feldman, Fox & Morgado, we are investigating several for-profit colleges, universities, academies and their parent companies for fraud, misrepresentation and violation of Unfair Trade Practices Acts. Visit our new site and even if you do not see your school listed, we may already be conducting an investigation and want to hear your story. We look forward to discussing your case soon.
    EducationFraudLawsuit.com

  • Ti
      22nd of Jan, 2013
    0 Votes

    I need help in resolving an issue with Gibbs College (Norwalk) Sanford-Brown. When I was accepted I was told that I had received financial aid. After 2 semesters I realized that the "classes" were a joke. I was taking graphic design and one the first day of class during my third trimester, the” instructor” for Photoshop 2 walked in and told us that she was going to be learning the program along with us and too be patient. WHAT?!?!?!
    I went to the main office to switch out of that class and was then told that I had a HUGE bill because my financial aid had never been approved. I withdrew from classes immediately. I could not afford that school without financial aid and would never have attended without it. I told them I would pay for my books and art supplies but nothing more since they had lied to me. That was 15 years ago. About every 5 years I get a call from a collections agency stating that I owe $16, 000 and that I didn't get financial aid because I dropped out. I write letters, call Sanford Brown and then the account gets pulled from that agency and I don't hear anything back. Well I got another call last night from a new collection agency.
    I don't know what to do. They tricked me into believing I had financial aid and then wanted me to pay everything cash after I already completed 2 semesters. THEN they put in my file that I stopped attending classes when the truth is that I withdrew using their standard procedures. Does anyone have a similar problem and do you have an attorney?

  • Al
      8th of Feb, 2014
    0 Votes

    For the last semester of my college degree at Briarcliffe college, ( a CEC school) Briarcliffe college failed to provide instructors for the 3 courses I was enrolled in. For 1 of these courses there was no instructor for the first six of eight weeks or for 18 of 24 classes. For the second course despite many calls to the head of the graphic design department no call was returned and no instructor was provided at all. For the 3rd course after seven weeks and a grossly unprofessional email from the head of the graphic design department, I was forced to contact the provost of Briarcliffe college. The dean had been repeatedly been made aware of the situation throughout the semester but took no action to rectify the situation . After contacting the provost and forwarding both the email sent to me and my response, an instructor was assigned for the last week of an 8 week course which is all in violation of NYS Dept of Education mandates. Knowing that they failed to provide the services they were obligated to provide, they have been demanding payment for the semester. For ten years. Additionally they never returned over $2000 in unused book vouchers that were billed to my student loans without my consent. Is this legal? Not to mention the job placement program which they tell you they will help you to get a job in your chosen field of study when recruiting you . Only after you are financially indentured to Briarcliffe do they tell you the only job placement they can give you is as a Walmart cashier.

  • Ci
      24th of Jun, 2014
    0 Votes

    I hear you about the bogus job placement that Briarcliffe supposedly offered. I attended Briarcliffe College from 2007-2011. After getting 2 associate degrees, one in criminal justice and the other in paralegal studies, I was hopeful that the College would perhaps help me find employment in the law field. I was an adult attending evening classes and upon graduating I went to the career center to inquire about job placement. It seemed like the only jobs available were jobs at Nature's Bounty Vitamin Warehouse, Costo, Walmart and various other retail stores in the area (which anyone could have applied for employment). I was also informed that I would be looked at "differently" by potential employers based on my age! (I was 54 at the time). I found this extremely offensive, especially after dropping nearly $65, 000 in tuition costs, which I had to take loans out for. Seems like the minute they get your money, they could care less about what you do. Needless to say, I wrote a letter complaining to the Head of the School in Patchogue and later found out that the counselor who informed me that I was too old to be considered for employment, was no longer there. Shame on you Briarcliffe

  • Fr
      25th of Jun, 2014
    0 Votes

    These kinds of frauds often happen to embezzle funds and fees of students and make them suffer seriously in the last. This must be strictly handled by police and give severe punishments for those culprits who deceive innocent people and put the career of students at stake.
    www.courseworkpal.co.uk/geography-coursework/

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