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SAN FRANCISCO – Attorney General Kamala D. Harris today filed a lawsuit against Corinthian Colleges Inc. (CCI) and its subsidiaries that operate Everest, Heald and WyoTech colleges for false and predatory advertising, intentional misrepresentations to students, securities fraud and unlawful use of military seals in advertisements.
The 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.
“The predatory scheme devised by executives at Corinthian Colleges, Inc. is unconscionable. Designed to rake in profits and mislead investors, they targeted some of our state’s most particularly vulnerable people – including low income, single mothers and veterans returning from combat,” Attorney General Harris said. “My office will continue our investigation into the for-profit college industry and will hold accountable those responsible for these illegal, exploitative practices.”
According to Harris’ 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 %.” 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 healthcare 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 81,000 students who attend CCI colleges, approximately 27,000 (33%) are in California.
CCI is a publicly traded corporation with assets of over $1 billion. Federal funds account for almost all of CCI’s annual revenue.
In July 2013, Attorney General Harris filed a separate lawsuit in Sacramento Superior Court to enforce an investigative subpoena against Bridgepoint Education Inc., operator of Ashford University, as part of an investigation of that company’s practices.
Current or former CCI students who wish to file a complaint can contact the Attorney General’s Office at: http://oag.ca.gov/contact/consumer-complaint-against-business-or-company .
Resources for current or former CCI students are available at www.oag.ca.gov .
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LAKE COUNTY, Calif. – The Lake County Big Read is partnering with various businesses, organizations, libraries and schools to provide numerous opportunities to engage with the story of “The Joy Luck Club” by Amy Tan.
Activities and events will only occur in the program month of October, so plan to schedule at least one Big Read event in the next few weeks.
The Chinese Film Series opens this Thursday with a screening of “Raise the Red Lantern,” a highly acclaimed foreign film (subtitled) at the Schoolhouse Museum in Lower Lake. This film is recommended for ages 14 and older. Showtime is 6 p.m. Admission is free.
This Saturday, Star Gardens in Middletown will host a talk and tea on the Chine sis plant species, native to China, at 1 p.m. These plants include popular garden varieties such as wisteria and the ever blooming rose. Bring a folding chair and be ready to learn, as well as enjoy the lush and peaceful environment of the nursery gardens. Admission is free.
Next week, gourmet food caterer Chic le Chef is offering a Chinese cooking class at the Lower Lake High School culinary kitchen. Menu items have been lovingly chosen from the novel and are sure to delight the senses.
The cost is $35 per person and includes hands on instruction, a take home recipe booklet, and the chance to enjoy the pleasures of food, and book discussion. Contact
Adding to the opportunities for culinary Chinese delights, the Aroma Café on the Yuba Community College campus in Clearlake is hosting a sumptuous Chinese luncheon buffet on Wednesday, Oct. 16. Lunch reservations can be arranged by contacting the restaurant on campus. Additionally, a special student performance based on The Joy Luck Club will be presented that afternoon.
Future programming includes a Chinese food and wine pairing at the Lake County Wine Studio on Saturday, Oct. 19, a Murder Mystery Dinner Theater at the Tallman Hotel on Oct. 19, and a young people’s chess tournament at Burns Valley School on Oct. 19.
The Big Read is a program of the National Endowment for the Arts (NEA) designed to restore reading to the center of American culture.
Managed by Arts Midwest, The Big Read provides competitive grants to support innovative reading programs in selected communities.
For more information on the Lake County Big Read events, visit the www.NEABigRead.org site (follow the link to communities and click on the Lake County balloon) or the www.lakecoe.org Web site (follow the links to the Big Read page).
Contact Program Director Robin Shrive at
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CLEARLAKE, Calif. – Yuba College Clear Lake Campus is offering campus tours of the newly completed campus.
People interested in seeing the three new buildings and learning about all of the programs are invited for campus tours on either Tuesday, Oct. 22, at 5 p.m. or Wednesday, Oct. 23, at 10 a.m.
Tours will include a “behind the scenes” look at the culinary program's kitchen and restaurant, the new science labs including a cadaver room, and the Library Student Services building.
Visitors will learn about career technical programs, associate degrees, and transfer options to the state universities and universities.
To reserve a spot or mention specific things you would like covered on the campus tour, please call 707-995-7900 and indicate which day you would like to attend.
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LAKEPORT, Calif. – The Lake County Friends of Mendocino College (LCFMC), an affiliate of the Mendocino College Foundation Inc., has donated $2,000 to support tutoring services at the new Mendocino College Lake Center.
Tutoring services have been provided to Mendocino College students in Lake County in the past, but the funding to support such programs has not always been guaranteed.
This recent contribution will ensure that the Lake Center will be able to provide tutoring services to college students.
“This money will allow us to manage tutoring services and pay tutors from our own budget,” explained Arlene Peters, center operations supervisor at the Lake Center.
With these funds, the Lake Center staff plan to expand existing services to provide more tutoring opportunities to more students.
It has often been difficult to find tutors at the Lake Center, but staff hopes that this support will bring new momentum to the existing tutoring program and create awareness of this valuable service provided to students at no cost.
Tutoring services allow students to participate in one-on-one interaction, which generates student success. Both tutors and students benefit from this.
“Sometimes students come in for tutoring thinking that there is no way to understand their assignment. After a tutoring session, they realize that they can do it. There is nothing like the feeling of being able to help someone do something successfully. It makes me want to always do this work,” stated Janita Hansen, Lake Center tutor.
Mendocino College provides tutoring to a wide range of students who need academic support in foundation skills through transfer level courses.
Tutoring services are provided across disciplines, to students who need extra support with their coursework.
One-on-one or group tutoring is available to all students on a drop-in basis and by appointment.
All tutors must be recommended by a previous instructor and must receive a grade of B or higher in the subject(s) they are tutoring. All tutors must also complete a tutor training course, EDU 110.
Being a tutor is great training for Mendocino College students.
“As tutors work with students, I see them grow. They reinforce their learning and gain confidence as leaders in the college community,” said Janet Daugherty, learning center assistant, Ukiah campus.
The LCFMC was created in 2011 as an affiliate of the Mendocino College Foundation to establish partnerships with existing organizations in Lake County whose mission and activities are consistent with its goals and purposes.
The members of its governing council are community leaders in education, business and civic endeavors in Lake County.
Fundraising activities of the Friends include the Professional Pianists Concert held annually in the spring at the Soper Reese Theatre in Lakeport. Donations match generous community support for student scholarships, the Adopt a Fifth Grader program, Academic Decathlon and other activities benefitting student success at every level.
For more information about the LCFMC, contact Wilda Shock, chairperson, 707-263-7575.
For more information about tutoring services at Mendocino College, contact Sarah Walsh at 707-468-3122.