Justice Department Launches Corinthian Investigation
Career College Central Summary:
Corinthian Colleges announced Friday in a regulatory filing that it is under investigation by the U.S. Department of Justice for alleged violations of the False Claims Act.
The for-profit college chain faces allegations of manipulating student attendance and grade records, inflating the job placement rates of its graduates, and lying about its funding sources, according to Corinthian’s filing with the Securities and Exchange Commission.
Corinthian also reported that it worked out an agreement with its lenders that the U.S. Department of Education had required before releasing more federal funding to the company.
Click through to read the full article.