Education officials fine for-profit college for false claims

Apr 14, 2015 6:54 PM by News Staff

WASHINGTON (AP) - The Education Department says it will fine Heald College $30 million, alleging the Corinthian Colleges subsidiary had engaged in egregious misconduct and misled students.

Corinthian, a massive for-profit educational institution, collapsed last summer amid a cash shortage and fraud allegations.

The department alleged that Heald, based in San Francisco, had shown a pattern of falsifying post-graduation employment data. In one instance, the department said, the company's Honolulu campus declared that a graduate had found work in her chosen field of accounting - even though administrators knew she was working at Taco Bell.

Corinthian spokesman Joe Hixson called the allegations "highly questionable."

The penalty may not be collected. Corinthian's once billion-dollar stock is virtually worthless, and the company faces numerous legal claims.

Copyright 2015 The Associated Press. All rights reserved.


Most Popular