Glance: Trouble remains after colleges shed for-profit model

AP News
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Posted: Mar 14, 2016 4:49 PM
Glance: Trouble remains after colleges shed for-profit model

An AP review on Monday found ongoing trouble at schools formerly part of Corinthian Colleges Inc., a for-profit career college chain that failed in 2014 amid allegations of fraud and mismanagement.

Here's what the AP found about the schools' new owner, Zenith Education Group:

—Key academic, legal and financial aid executives from Corinthian kept their jobs, casting doubt on the schools' ability to break with the past. Some obscured their past work by scrubbing information from online social media profiles.

—Zenith's flagship brand, Everest University, has been advertising academic programs that no longer exist. Admissions staff attempted to persuade people enticed by such programs to enroll in different fields.

—The law firm serving as independent monitor of the schools' turnaround, Hogan Marren Babbo & Rose Ltd., is a frequent legal advocate for for-profit colleges. It was hired directly by Zenith and initially had an attorney-client privileged relationship with the company. After the AP described its findings from a nine-month investigation, the Education Department said it was removing the firm.

—Zenith continued to run the same television commercials aired by Corinthian, during the same daytime television talk shows.