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California Attorney General Kamala D. Harris has taken steps to file additional charges against Corinthian Colleges Inc. (CCI) alleging that the company is currently violating California false advertising and unfair competition laws and is requesting that a court immediately force CCI to tell prospective students the truth about the company’s dire financial situation and its agreement with the federal government to sell or close all of its schools.
“It is unacceptable yet not surprising that Corinthian Colleges continues to illegally target vulnerable Californians – including low income individuals, single mothers and veterans returning from combat – by lying about its dire finances and failing to tell prospective students that the schools to which they apply will all be sold or closed,” Harris said. “My office is seeking expedited action to force Corinthian Colleges to put the interests of its students above its rapidly shrinking profits.”
Harris filed a motion Wednesday asking San Francisco Superior Court for permission to move on an expedited basis to file a supplemental complaint enhancing the original complaint Harris filed against CCI in October 2013, which accused the company of false and predatory advertising, intentional misrepresentations to students, securities fraud, and unlawful use of military seals in advertisements.
Wednesday’s motion also indicates Harris’ intention to subsequently move for a temporary restraining order and/or preliminary injunction against CCI to force the company to immediately cease its misleading advertisements and inform prospective students about its dire finances.
In a filing with the U.S. Securities and Exchange Commission on June 19, CCI informed investors of its serious financial troubles and plans to close or sell its campuses.
This week, CCI signed an agreement with the U.S. Department of Education wherein CCI agreed to close or sell its campuses to third-parties in the near future.
Despite these recent events, according to the proposed supplemental complaint, CCI has failed to inform prospective students about its dire financial condition or its plan to close or sell its schools and is, in fact, actively soliciting prospective students and enrolling new students without disclosing its current financial condition or the future of its schools.
According to the filing, CCI Web sites and advertisements currently contain misleading statements including:
- “since we've been around for over 150 years, you can count on us to be here when you need it most.”
- “Heald is also a stable and permanent fixture in education communities”
- “at Heald, we're committed to providing career services assistance to our graduates, for life.”
Harris’ original complaint alleges that CCI intentionally targeted low-income, vulnerable Californians through deceptive and false advertisements and aggressive marketing campaigns that misrepresented job placement rates and school programs.
CCI deployed these advertisements through persistent Internet, telemarketing and television ad campaigns.
The complaint further alleges that Corinthian executives knowingly misrepresented job placement rates to investors and accrediting agencies, which harmed students, investors and taxpayers.
According to Harris’ original complaint, CCI’s predatory marketing efforts specifically target vulnerable, low-income job seekers and single parents who have annual incomes near the federal poverty line.
In internal company documents obtained by the Department of Justice, CCI describes its target demographic as “isolated,” “impatient,” individuals with “low self-esteem,” who have “few people in their lives who care about them” and who are “stuck” and “unable to see and plan well for future.”
According to the complaint, CCI advertised job placement rates as high as 100 percent for specific programs when, in some cases, there is no evidence that a single student obtained a job during the specified time frame.
The complaint further alleges that CCI runs millions of online and mobile ads offering ultrasound, x-ray, radiology, and dialysis technician programs at their California campuses – when, in fact, CCI does not offer those programs. CCI’s call center agents are disciplined if they tell callers that CCI does not offer these programs.
Additionally, according to the complaint, CCI includes official Army, Navy, Air Force, Marine Corps, and Coast Guard seals in mailings and on web sites without authorization and in violation of California law.
The complaint alleges that CCI committed securities fraud by reporting a nationwide job placement rate of 68.1 percent in presentations to investors, when senior executives knew this percentage was false.
The complaint describes internal audits emailed to CCI executives that show job placement data error rates between 53 percent and 70 percent.
The complaint references an email from a CCI executive which explains that in 2011, two Everest College campuses (Hayward and San Francisco) paid a temporary employment agency “to place students to meet the accreditation deadline and minimum placement percent.”
The complaint also states that CCI double-counted job placements and failed to maintain required records of reported job placements.
According to a recent CCI securities filing, the average tuition for a CCI associate’s degree is $40,000 and the average tuition for an online CCI associate’s degree is $34,000. The average tuition for CCI’s non-degree health care programs is $17,000.
CCI is based in Santa Ana and currently operates 24 Everest, Heald and WyoTech campuses in California, 111 total campuses in North America and three online programs. Out of the 72,000 students who attend CCI colleges, approximately one-third are in California.
Federal funds account for almost all of CCI’s annual revenue.
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SACRAMENTO – Taking action to reduce California’s long-term fiscal liabilities, Gov. Edmund G. Brown Jr. on Tuesday signed AB 1469, which fully funds – over a period of years – the teachers’ retirement system through annual contributions of school districts, teachers and state government.
“This bill will ensure a decent retirement for hundreds of thousands of teachers, both now and for decades to come,” said Gov. Brown.
Before this bill, the California State Teachers' Retirement System (CalSTRS) was only 67 percent funded and would have run out of money in 33 years.
Under the legislation, authored by Assemblymember Rob Bonta (D-Alameda), the first year’s contributions from teachers, schools and the state total approximately $276 million, growing in subsequent years to more than $5 billion annually. This is projected to eliminate the unfunded liability in the system by 2046.
“Our dedicated teachers work tirelessly to prepare our kids for college and career, and they deserve stability in their pension system,” said Senate President pro Tem Darrell Steinberg. “This shared responsibility between the state, teachers and school districts is a necessary step towards assuring the fund’s integrity, and will lift a huge burden from the state’s long term financial responsibility.”
“In January, Assembly Democrats made clear that kicking the CalSTRS underfunding can down the road had to stop, and that a comprehensive, solution needed to be approved this year,” said Assembly Speaker Toni Atkins. “With today’s signature by the governor, CalSTRS escapes the downward spiral to insolvency and is now on a solid path to full funding. This shared solution, with the state, school districts, and teachers all contributing, provides greater retirement security to our dedicated teachers and more budget certainty to the state and our school districts.”
“As chair of the Committee on Public Employees, Retirement and Social Security, I was proud to engage in a comprehensive effort with both houses of the Legislature and the Governor to address the CalSTRS' $74 billion shortfall,” said Assemblymember Bonta. “AB 1469 puts CalSTRS on a course to fulfill the commitments the State has made to California’s educators for the invaluable service they provide to our students. Enacting this plan would not have been possible without the supportive participation of the leadership of both houses and the progressive vision of Governor Brown.”
“Recognition of CalSTRS’ financial stability as a priority demonstrates the Governor’s leadership and commitment to a sustainable retirement system for California’s educators,” said Harry Keiley, Chair of the Teachers’ Retirement Board. “This historic legislation allows CalSTRS to embrace its future with confidence and optimism knowing that a sound funding plan is firmly in place.”
The bill was included in the 2014-15 state budget, which the governor signed in San Diego last week.
The budget directs $1.6 billion into the state Rainy Day Fund – the first deposit into the fund since 2007 – and reduces the Wall of Debt by more than $10 billion. Under the budget plan, the Wall of Debt would be completely eliminated by 2017-18.
The bill follows the governor’s call in February for the California Public Employees’ Retirement System (CalPERS) to begin accounting for demographic changes for state employees immediately, with the increased costs fully phased in within three years – instead of pushing the costs off into the future. The CalPERS board adopted the changes sought by the Governor.
In 2012, the governor signed sweeping bipartisan pension reform legislation that saves billions of taxpayer dollars by capping benefits, increasing the retirement age, stopping abusive practices and requiring public employees to pay a larger share of their pension costs.
When Governor Brown took office, the state faced a massive $26.6 billion budget deficit and estimated annual shortfalls of roughly $20 billion. These deficits, built up over a decade, have now been eliminated by a combination of budget cuts, temporary taxes approved by voters and the recovering economy.
For full text of the bill, visit http://leginfo.legislature.ca.gov .
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UPPER LAKE, Calif. – Upper Lake High School has released its second semester honor roll in the 2013-14 school year.
The following students were honored.
Trustee Scholars 4.0 and above:
12th grade: Veronica Becerra-Lopez, Jordin Simons, Ian Seevers, Ashley Matta and Christian McMilin.
11th grade: Janee Swaney.
Principal’s Honor Roll 3.0 to 3.99:
12th grade: Leslee Bermudez, Byron Garcia, Robin Heiartz-Martin, Morgan Lucas, Savannah Koppenhaver, Yamileth Plata, Marcella Stifter, Cheyenne Callaway, Mohammed Hussain, Megan Wold, Nicholas Bills, Brittany Benner, Danielle Donohue, Mara Hesterberg, Savanah Fecht, Anthony Brackett, Gabriel Ramos, Anthony Arroyo, Monicka Diaz, Brittany Sheets, Mikala Maugeri, Jamie Maddock, Sierra Mills, Samantha Hansen, James Duarte, Jeremiah Swaney, Ryan Stokes-Kitchens, Montgomery Herman, Emma August, Joseph Moore, Michael Hickey and Gregory Gagnon.
11th grade: Lyla Seevers, Steven Harrington, Farhad Hussain, Ashley Chilton, Fernando Mendoza, Amanda Gaylor, Phoebe Clifton, Ryan Carr, Benjamin Calkins, Heather Hankins, Ellisia Castro Ibey, Tyler Peters, Lashaye Pearl Taylor, Bianca Cruz, Amber Drake, Jay Michael, Hannah Johnson, Spring Moore, Shirley Murguia, Jeremy Doss, Macy Harnden, Juan Ruiz Olguin, Bradley Dale and Ashley Moran.
10th grade: Kaylee O’Bryant, Ashley Clarke, Jessica Mooney, Mercedes De Los Santos, Zachary Sneathen, Collin McVey, Wroehnyn Milks, David Becerra Lopez, Katie Foster, Cole Miller, Santos Obedoza, Autum Martinez, Anthony Percival, Matthew Willard, Chase Goetjen, Patrick Dever and Thomas Byerly.
Ninth grade: Miranda Huntley, Megan Franco, Haley Sheets, Haley Hunter, Dakota Fugate, Angel Stith, Emily Dunn, Jasmine Sparks, Chelsie Valdez, Salvador Sanchez, Kejhana Taylor, Isabel Rorabaugh, JayCee Roberts, Valeria Robles, Alejandro Sanchez, Rhianna Eby and Brianna Tartaro.
Dean’s List 2.0 to 2.99:
12th grade: Alex Orth-Wright, Timmy Diggs, Gabriel Anderson, Andrew Rich, Dane Canavarro, Ashton Hicks, Charles Martinez, Andrew Brazil. Leonardo Saldana, Connor Burgess, Taato Hernandez, Thomas Santana-Alfaro, Charlie Landa, Juan Rojas, Wesley Thaxton and Francisco Gallardo.
11th grade: Brandon Fried, Arthur Wilkie, Olivia Cox, Michael DiAndrea, Theresa Lopez, Janice Chandler, Zachary McQueen, Taylor Coleman, Abel Serrano Johnson, Skylar Orozco, Nicholas Kranich, Sierra Fugate, Jason Benner, Tyler Banks, Sheyla Ayala, Kaysea Murphey, Kayla Castillo, Patience Schumack, Alexis Vega, Derek DiAndrea, Baby Quintero, Joleca Augustine, Nicholas McLean Stith, Crystal Beavers, Michael Petz and Indio Drapeau.
10th grade: Jessica Arroyo, James Heryford, Edgar Valencia, Maria Mendoza, Alexander Durbin, Desiree Knight, Angel Sanchez, Kristen King, Abigail Williams, Caleb Henry and Steven Diaz.
Ninth grade: Nicholas Newcomb, Oh’shinnah Bluewolf, Chase Clark, Cristal Nieves Renteria, Anthony Serrano, Angelina Godinez, Emilyann Heiartz Martin, James Derr, Christopher Bills, Natalie Karlsson, Crystal Carroll, Jazlyn Bonilla, William Santos, Kevin Bermudez-Jacuinde, Liliana Roman Ibey, Amber Robertson, William Snow, Francisco Gregorio Flores, Timothy Beffa and Isaiah Garcia.
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LAKE COUNTY, Calif. – The Lake County Office of Education Clearlake office has partnered with McGraw Hill to participate in a field study.
Adult participants can earn a $100 Visa/Master Card gift card for taking a battery of five computer-based tests in math, reading, writing, social science and science, plus an extra $40 for an essay.
Complete the battery of tests and get paid regardless of your scores, however the results must prove that you showed reasonable effort. Gift cards will be mailed once results are verified.
Current sophomores, juniors and seniors also may participate in a field study for $40. Please bring student ID.
Sessions are available Tuesday, Wednesday and Thursday through the month of July starting at 8:30 a.m.
Testing will take place at the Lake County Office of Education Clearlake office located at 14092 Lakeshore Drive.
Please reserve a spot by calling 707-994-9001 or emailing Tammy Serpa at