Federal prosecutors last week ordered the troubled Corinthian Colleges to turn over a new round of documents relating to job placement, graduation rates, marketing materials, and student loan defaults, Inside Higher Ed reported.
In a regulatory filing submitted on Wednesday, the for-profit education company disclosed that it received a grand jury subpoena last week from the U.S. attorney's office in Los Angeles. Corinthian "is evaluating the subpoena and intends to cooperate fully with the request," the company said.
The company also disclosed that state regulators in Virginia, Florida, New York, and Illinois have suspended its ability to enroll new students using veterans' benefits. California has barred Corinthian from utilizing veterans' benefits for new and current students.
Corinthian said it is fighting those restrictions but warned that "suspensions and possible withdrawals of approval to train veterans, if not reversed, could negatively affect the sales process for the company's sales schools in the affected state."
The lengthy filing details myriad other challenges facing Corinthian, which has responded to stricter regulation by the U.S. Department of Education by agreeing to sell most of its campuses and wind down activity at the rest, The Chronicle of Higher Education reported.
Related Links
U.S. Securities and Exchange Commission Filing
http://www.sec.gov/Archives/edgar/data/1066134/000110465914060150/a14-18886_18k.htm
Inside Higher Ed
https://www.insidehighered.com/news/2014/08/14/us-attorney-subpoenas-corinthian-records-graduation-rates-defaults
The Chronicle of Higher Education
http://chronicle.com/blogs/ticker/government-subpoenas-more-records-from-corinthian/83939