One institution stood out for its particularly brazen manipulation of job placement numbers: Career Education Corp., the bearer of a voluminous record of whistleblower lawsuits and run-ins with government investigators.
Nearly a decade ago, California regulators restricted the company's license to run the Brooks Institute of Photography in Santa Barbara after investigators concluded that the company was misleading prospective students about their job prospects. The state fully reinstated the company's license in 2007, after a judge ruled that the regulators hadn't followed the proper procedures during the investigation. Between 2005 and 2007, the federal Department of Education restricted the company's expansion as it investigated a "history of noncompliance" with financial aid rules.
The separate investigation of the company's falsified job placement records by New York Attorney General Eric Schneiderman led to a $10 million settlement last month.
source:http://www.huffingtonpost.com/2013/09/19/for-profit-college-accreditation_n_3937079.html...
"In a statement, Schneiderman said stricter requirements from accreditors could prevent schools from continuing to mislead students. "We've seen too many instances where students are deceived by for-profit education companies, and I would hope that accreditors seriously consider improving and strengthening their oversight practices," he said.
During this period and up to the present day, none of the Career Education Corp. schools saw its accreditation revoked, according to the company's securities filings."