University of Phoenix parent discloses probe

AP News
Posted: May 16, 2011 4:54 PM
University of Phoenix parent discloses probe

The nation's largest for-profit college says it is being investigated by the Massachusetts attorney general for possible deceptive practices in its student recruiting and financing.

Phoenix-based Apollo Group disclosed the probe of its University of Phoenix subsidiary in a Monday filing with the U.S. Securities and Exchange Commission.

The filing says it has received a civil demand to produce documents and detailed information and give testimony about a broad range of its business activities dating back to 2002.

The company says it believes Massachusetts is working with a coalition of several states to investigate recruiting and financing practices at for-profit colleges. The company says it is evaluating the demand.

Apollo Group stock fell 88 cents to $41.71 in Monday's regular session. The stock lost another 20 cents after hours.