SEC investigation targets Education Management Corp.
- Education Management Corp., which operates the Art Institutes and other for-profit institutions, is being investigated by the Securities and Exchange Commission.
- A regulatory notice filed Friday by the company reveals that it was subpoenaed by the SEC's enforcement division on Tuesday for "documents and information relating to the company's valuation of goodwill and to its bad debt allowance for student receivables."
- In its most recent quarterly report filed with the agency, Education Management Corp. said its goodwill value had not changed since June 30 and that it expected bad debt expenses to increase due to reduced federal and private student loan availability.
From the article:
Education Management Corp., which has seen both its stock and enrollment battered by ongoing inquiries raised about recruitment tactics used by the for-profit colleges and tightened federal student loan rules, is now the target of an investigation by the Securities and Exchange Commission. ...
- Pittsburgh Post-Gazette Read More
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