Replies to post #412318 on Zeev's Turnips Patch-No Politics (ZEEV)

[was hotlinktuna]

CHINA 3.17 starting to improve it appears.

[marketmaven]

CECO- DOE Investigation Widens as House Panel Votes to Cut Education Funding

*DJ US House Panel Backs Plan To Cut Student Loan Subsidies
07/21/2005 - Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)

6/30/05: (CECO) Merrill Reit Neutral CECO announced that the Department of Education is reviewing its restated financial statements, compliance audit opinions from 2000-2003, and pending program reviews of at least three of CECO`s institutions.

Taubenfeld, et al. v. Career Education Corporation, et al.
Career Education Corporation (NASDAQ: CECO)
http://www.securitiesclassactiondirectory.com/casehome/2624

According to a press release, The complaint charges CEC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Career Education publicly touted its business and financial performance, the performance of its stock price and its industry leading position as reasons for why investors should purchase its stock. These, and other statements particularized in the complaint, were materially false and misleading because they failed to disclose that CEC had been regularly falsifying student records in order to increase graduation rates and enrollment, conceal problems that could have threatened the accreditation of its schools, and generally, to allow it to increase its profitability. On December 3, 2003, the market learned that the former registrar of CEC's Brooks Institute of Photography in Santa Barbara, California alleged, in a complaint filed with an accreditation agency, that the school falsified student records to ensure that the school passed inspections by accreditation auditors and to increase enrollment. In reaction to this announcement, CEC's stock price plummeted, falling from $54.76 per share on December 2, 2003 to $39.48 on December 3, 2003, a one-day drop of 28%, on trading volume of 18.2 million shares -- more than nine times the Company's three-month daily average. Throughout the Class Period, Career Education insiders, including the individual defendants, sold a total of 1.7 million (split-adjusted) shares of Career Education common stock at artificially inflated prices, reaping gross proceeds in excess of $69 million.

Career Education Faces Further Fraud Claims
http://www.nysscpa.org/home/2004/1204/3week/article34.htm

NEW YORK -- Career Education (CEC), the for-profit education company under regulatory scrutiny over allegations of fraud, faces a fresh challenge from the state of California over a campus where the company’s problems first surfaced, the Financial Times reported Tuesday.

California’s overseer of career colleges issued a critical report of the practices at CEC’s Brooks Institute of Photography in Santa Barbara, Calif., saying it discovered in a November review that student withdrawal forms had been tampered with and job placement numbers overstated.

In a letter dated Dec. 1, and obtained by the Times, the state’s Bureau for Private Postsecondary and Vocational Education has threatened to deny Brooks the right to continue operating in California unless the college responds to concerns before December 31.

The bureau declined to comment on the report, saying it was waiting for the company to respond before proceeding. CEC said it would respond to the bureau before the deadline and intended its response to “satisfactorily address the issues raised in the letter”.

-- NYSSCPA.org News Staff

Posted on 12/15/04

AP Wire / 08/26/2004 / Grand jury probing Career Education - report
U.S. Justice Department has launched a grand jury investigation into whether recent allegations of fraud at Career Education Corp.
www.fortwayne.com/mld/journalgazette/business/9503...

CECO featured on:
http://www.scam.com/

[urmygold1]

bill clinton lied to grand jury...no jail time!{vbg}

[Zeev Hed]

So would I, taking LSCP at a loss seems now to have been a good move, that one now could easily go and retest the low $28...sorry, forgot to mention earlier reestablishing the short on CCMP above $33.