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Corinthian Says Campus Back in U.S. Compliance

September 23, 2004|From Times Staff and Wire Reports

Corinthian Colleges Inc., facing state and federal investigations, said Wednesday that its Bryman College campus in San Jose was again able to comply with the U.S. Education Department's rules to receive tuition reimbursements in advance.

The Santa Ana company, one of the largest for-profit operators of trade and technical colleges in the U.S. and Canada, acknowledged in June that a government review had found that the San Jose campus failed to meet student financial aid requirements.

The department placed the campus "on reimbursement," which meant that Bryman had to cover students' tuition for as many as 45 days while the government reviewed financial aid applications instead of advancing the money.

The delay in payments had an "immaterial" effect on the company's financial performance, Corinthian said Wednesday.

The company had said the Bryman problem was isolated.

"Frankly, we are embarrassed that the company's policies and procedures were violated at that campus," Chief Executive David G. Moore told analysts in a conference call this month.

Wednesday's news had a positive effect on the company, which saw its shares rise 70 cents to $13.72 on Nasdaq. They have fallen 49% this year.

Corinthian still faces an informal Securities and Exchange Commission probe of the company's statements and performance for the fiscal year ended June 30 and its first quarter ending Sept. 30. The company said Monday that it believed that the SEC also was looking at the review of the Bryman campus.

The California attorney general's office also is investigating Corinthian as part of a broad examination of the industry.

Corinthian, which specializes in schools for healthcare professionals, has 64,810 students at 136 campuses in the U.S. and Canada.

Bloomberg News was used in compiling this report.

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