Corinthian Colleges tells investors it is facing a criminal probe

Stefanie Botelho's picture
Friday, August 15, 2014

After months of financial uncertainty and battles with regulators, Corinthian Colleges Inc. told investors Wednesday about the prospect of a criminal investigation by federal prosecutors.

The beleaguered Orange County for-profit college company said in a filing that it received a grand jury subpoena from the U.S. attorney's office in Los Angeles.

The subpoena requests a broad range of documents and records related to the company's job placement rates, graduation rates and marketing materials used to recruit students. The Santa Ana firm has previously received subpoenas and similar document requests from state attorneys general, the Securities and Exchange Commission and the federal Consumer Financial Protection Bureau, but Wednesday's announcement was the first to signal the possibility of a federal criminal inquiry.

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