Thursday, January 17, 2008

U of Phoenix & fraud

From this morning’s New York Times: Fraud by University Owner Is Found:
PHOENIX (AP) — The Apollo Group Inc., the company that owns the University of Phoenix, fraudulently misled investors in 2004 about student recruitment policies, a federal jury decided Wednesday. The panel ordered the company to pay shareholders about $280 million.

Jurors said Apollo officials “knowingly and recklessly” made false statements in a news release, a filing with the Securities and Exchange Commission and four conference calls with market analysts. By doing so, jurors said, Apollo violated federal securities laws.

…Shareholders claimed that Apollo misled investors four years ago when it kept secret a 2004 Department of Education report that criticized the University of Phoenix’s recruitment policies. The report concluded that the university paid enrollment counselors solely based on the “recruiters’ success in securing enrollments,” which violated federal regulations….
See also Piling on the U of P.

Roy's obituary in LA Times and Register: "we were lucky to have you while we did"

  This ran in the Sunday December 24, 2023 edition of the Los Angeles Times and the Orange County Register : July 14, 1955 - November 20, 2...