Tuesday, November 22, 2011

For-profit college CEO resigns over flawed placement rates

The Career Education Corporation's CEO has resigned after an outside investigation found "improper" practices in the for-profit company's determination of job placement rates.

The Career Education Corporation operates over eighty campuses including Sanford-Brown University and Sanford Brown Institutes enrolling 116,000 students.  

The company's third quarter report to investors to the Securities and Exchange Commission said that the review by an outside law firm the to investors disclosed that some of Career Education's health education and art and design schools failed to provide documentation to back up job placements, and that 13 of its 49 schools in those fields had failed to meet the placement rate requirements of the Accrediting Council for Independent Colleges and Schools.
While a news release did not specifically say so, it appeared that those developments had prompted the resignation of Gary E. McCullough as president and chief executive.

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