Corinthian Colleges, once one of the nation’s largest for-profit education companies, engaged in apparently unlawful practices by paying its recruiters based on how many sales leads they converted into actual students, according to documents unsealed late last week, the New York Times reported today. The disclosure may make it easier for former students of the defunct institution to have their federal loans forgiven by helping them establish that they were defrauded or that Corinthian violated federal law while it was operating. The materials, released by a three-judge panel in the U.S. Court of Appeals for the Ninth Circuit, are internal Corinthian documents known as “Ad Rep Performance Flash Reports.” They were originally provided by two former employees who sued Corinthian and its auditor in 2007. Most of the documents the employees produced in the case — almost 800 pages — remain under seal. The filing also contains a sworn affidavit filed by Nyoka June Lee, one of the former Corinthian employees, who stated that her compensation was based upon meeting enrollment quotas. “Making my numbers was the only requirement to get a raise,” Lee said. Read more.
Listen to a podcast looking at the Corinthian Colleges Case and the appointment of a student creditor committee.
