Complaint Review: AIU - American InterContinental - Career Education

Career Education outlines probe by Justice Dept.
Cheryl V. Jackson
The Chicago Sun-Times
2 June 2006

The U.S. Department of Justice is investigating allegations that Career Education Corp. schools submitted false claims or statements about costs and job placement, the company said Thursday.

The Hoffman Estates-based for-profit school operator Tuesday got a letter from the Justice Department's Civil Division saying it is looking into allegations related to some of CEC's 81 schools, according to a Securities and Exchange Commission filing Thursday.

In 2004, the Justice Department opened an investigation into CEC, but the newest request for information comes from a different division of the Justice Department.

The department is requesting that CEC provide documents that show what the school represented to students regarding job placement, placement rates and costs, CEC said. The department also wants documents relating to the pay for admissions employees, the use of Pell Grants and the calculation of student refunds.

"The Justice Department has indicated that this review is informational in nature," CEC said. "We plan to cooperate fully."

Jakelarceny
Hoffman Estates, Illinois
U.S.A.