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January 18, 2005

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kstreetfriend

Stan Chess (En Passant http://lawtv.typepad.com/en_passant/2004/a_question_of_l.html) writes "kaplan's Concord School of Law says it's one of the largest law schools in the country, yet for each administration only about 25 of its graduates sit for the bar exam. What happens to the hundreds of other students in each class?"

According to the New York Times: Recently, a number of for-profit colleges have faced inquiries, lawsuits and other actions calling into question the way they inflate enrollment to mislead/increase the value of their parent company’s stock.

In the last year, the Career Education Corporation of Hoffman Estates, Ill., has faced lawsuits, from shareholders and students, contending that, among other things, its colleges have inflated enrollment numbers. The company acknowledged that it was under investigation by the Justice Department and the Securities and Exchange Commission.

In February 2004, F.B.I. agents raided 10 campuses run by ITT Educational Services of Carmel, Ind., looking for similar problems.

Kaplan is wholly own by the Washington Post Company. I provided the S.E.C., Department of Education, and federal courts information that appears to prove Kaplan inflated the Concord School of Law enrollment, telling investors that the “flagship” of its higher education division has as many as 600 to 1000 or more students.

Why didn’t the Justice Department and S.E.C. included Kaplan with their investigation?


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