HUFFINGTON POST: Corinthian to Justice Dept: Get Our Docs Before ECMC Abandons Them
Career College Central Summary:
A lawyer for shut-down Corinthian Colleges has written to a U.S. Justice Department lawyer investigating the for-profit college company, warning that some school records may be "abandoned" as soon as next month. The June 29 letter, obtained by Republic Report, opens a window into the Corinthian litigation, and also highlights questions about the U.S. Department of Education's decision to allow Zenith Education Group, a newly-created subsidiary of Minnesota-based debt collection company ECMC, to acquire some 50 former Corinthian campuses earlier this year.
In the letter, attorney Evan C. Borges of the firm Greenberg Gross, which represents Corinthian in its bankruptcy case, told Justice Department Civil Division lawyer Jay Majors, "Corinthian is in a bankruptcy proceeding with scarce financial and human resources, and is winding down its affairs. Time is of the essence for your agency to make decisions on which records" from 30 former Corinthian campuses "you wish to inspect, copy, and/or preserve."
The letter from Borges informs DoJ's Majors that some of these records are now located in a Sacramento, California, warehouse under the control of Zenith, which paid a bargain-basement $24 million for the Corinthian campuses. Borges writes:
We expect that in the near future, Zenith will demand that Corinthian retrieve or abandon records that Zenith has determined are not relevant to the schools it acquired; or alternatively, that Corinthian or any agency that wishes to preserve the records pay for their storage. It is important that your agency contact Zenith directly if you have any concerns or if you wish for records to be preserved. We urge you to contact Zenith no later than August 1, 2015.
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