| July 18
July 18 Former federal prosecutor Patrick
Fitzgerald agreed to serve as an independent monitor of
Corinthian Colleges Inc, the struggling for-profit
education company that agreed to sell or close its campuses, the
U.S. Department of Education said on Friday.
Fitzgerald, 53, is a partner at Skadden, Arps, Slate,
Meagher & Flom, which he joined in 2012 after a decade as U.S.
Attorney for the Northern District of Illinois, which includes
As a prosecutor, he won the convictions of former Illinois
governors George Ryan and Rod Blagojevich; and the conviction of
Lewis "Scooter" Libby, a former aide to Vice President Dick
Cheney, related to the leak of covert CIA officer Valerie
Corinthian serves about 72,000 students, operates 107
campuses under such names as Everest, Heald and WyoTech, and
also offers degrees online.
It agreed on July 3 with the Education Department to put 85
campuses up for sale, wind down 12 others, and try to sell its
As monitor, Fitzgerald will oversee the sales' process, have
full access to Corinthian's personnel and budget records, make
sure the company complies with federal laws, and help ensure
that already-enrolled students complete their courses of study.
He will also oversee the establishment of a reserve fund of
at least $30 million, which will be used to offer full refunds
to eligible students.
Fitzgerald, through a Skadden spokeswoman, was not available
on Friday to comment.
Like other for-profit education companies, Corinthian has
relied heavily on government funds to conduct business.
Problems mounted in 2014 as Corinthian lost $79.6 million
from January to March, causing a breach of bank debt covenants,
and saw its cash stake shrink to $28 million from $46.6 million.
Corinthian remains subject to multiple federal and state
probes into such matters as whether it misled investors about
its finances, and misled students about job placement rates.
The Education Department on Friday said it has for several
months been looking into "serious concerns" about the Santa Ana,
California-based company's compliance with federal law.
(Reporting by Jonathan Stempel in New York)