New York's attorney general has entered into a $10.25 million settlement with one of the nation's largest for-profit school corporations after a two-year investigation into allegations of inflated job placement statistics and other misconduct relating to enrolling students. Attorney General Eric T. Schneiderman announced that the settlement with Illinois-based Career Education Corporation "resolves an investigation that revealed that in disclosures made to students, accreditors, and New York State, CEC significantly inflated its graduates’ job placement rates. CEC will pay $9.25 million in restitution to students, a $1 million penalty, and has agreed to substantial changes in how the company calculates and verifies placement rates." According to the attorney general's office, its investigation revealed that CEC inflated job placement statistics from at least 2009 through the spring of 2011." CEC operates schools that enroll about 75,000 students nationwide, including the Sanford-Brown Institute, American InterContinental University, and Colorado Technical University.
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