public traded as nasdaq ceco industry higher education and training services headquarters schaumburg illinois united states number of locations united states ; fewer than 10 campuses including online key people todd nelson president and chief executive officer number of employees 7 400 citation needed website www.careered.com career education corporation ceco is a for profit postsecondary higher education provider with campus based and online programs headquartered in schaumburg illinois . 1 the company s schools offer associate bachelor s master s doctoral and certificate programs in career focused disciplines . the organization will close most of its 50 campuses in the united states as the corporation downsizes to two primarily online brands american intercontinental university and colorado technical university . 2 at its height in 2010 career education corporation reported an overall enrollment of 118 205 students . in 2017 it is projected to have about one third that number . 3 in 2016 career education corporation enrolled about 43 000 students . however approximately 9 400 students were enrolled in schools that are in the process of shutting down . according to a 2014 us senate health education education and pensions report 48 % of career education s programs would have failed or been at risk of failing the us department of education s new gainful employment standards . 4 contents 1 history 2 funding 3 ceco schools 4 lawsuits investigations and controversies 5 downsizing 6 references 7 further reading 8 external links history edit career education was founded in 1994 by john m. larson 5 who served as the company s president ceo and was a member of the board of directors until 2006 . under his leadership career education grew to include over 24 u.s. campuses . between 1974 and 1999 career education purchased the al collins graphic design school brooks college allentown business school brown institute western culinary institute school of computer technology the katharine gibbs schools international academy of merchandising & design international academy of design southern california school of culinary arts scottsdale culinary institute harrington institute of interior design and mcintosh college . 6 career education corporation s initial public offering ipo was in 1999 . on july 1 2003 career education corporation merged with competitor whitman education group inc. gaining control over the latter s sanford brown colleges ultrasound diagnostic schools now known as the sanford brown institute and colorado technical university . they also obtained the former western school of health and business . 7 in the same year cec was sued for inflating financial results and issuing misleading statements thus violating the securities exchange act . 8 in 2009 career education purchased the right to operate le cordon bleu schools in the united states and canada for an estimated 135 million . 9 in march 2007 gary mccullough joined the company 10 and served as ceo until november 2011 when steven h. lesnik assumed the role of interim president and ceo . lesnik is the former chairman of the illinois state board of education . 11 in april 2013 scott steffey a veteran of strayer education inc. and former vice chancellor of the state university of new york suny system was named as lesnik s permanent replacement . 12 until 2015 california regent richard c. blum senator dianne feinstein s husband was a significant shareholder of career education stock despite allegations of conflict of interest . 13 todd s. nelson was named ceo of career education corporation in 2015 . 14 nelson was previously the ceo of apollo group parent company of university of phoenix and education management corporation the parent company of the art institutes argosy university brown mackie college and south university . 15 funding edit approximately 95 % of career education corporation s funds come from the us federal government with about 67 million annually coming from the us department of defense and veterans administration . 16 ceco schools edit american intercontinental university aiu briarcliffe college closing 2018 colorado technical university ctu harrington college of design closing 2018 17 le cordon bleu closing 2017 18 missouri college closing sanford brown colleges and institutes closing brooks institute sold lawsuits investigations and controversies edit a 1994 department of justice investigation alleged that the company overstated enrollment and manipulated financial statements . the case was terminated in april 2007 with the doj declining prosecution . 19 career education was investigated by the united states securities and exchange commission 20 for issues of non compliance in 2005 . on february 15 2005 the company announced an adjustment related to an increase in the estimate for its allowance for doubtful accounts and a restatement for a change in revenue recognition method for its culinary and healthcare externships . 21 in january 2008 cec reported that the sec closed its investigation and would take no action against the company . 22 23 24 in june 2005 the u.s. department of education prohibited ceco from expanding until it resolved issues with financial statements and program reviews connected with its collins college and brooks college . 25 in january 2007 the u.s. department of education lifted its restrictions on the company opening new schools or acquiring existing ones . 26 career education s american intercontinental university was placed on probation in december 2005 with its accrediting agency sacs . 27 the probation status was reviewed after one year in december 2006 and extended an additional 12 months . 28 on december 11 2007 cec announced that sacs removed aiu s probation and that the university s accreditation remained in good standing . 29 brooks college a career education owned school was the subject of an unfavorable examination of for profit trade schools in the cbs news magazine 60 minutes which focused on alleged misrepresentations by admission representatives to prospective students . a cbs producer with a hidden camera visited several career education schools in the new york area including the katharine gibbs school . 30 in june 2007 career education announced its plan to close both campuses of brooks college . 31 in january 2007 the new york state education department reported deficiencies at the katharine gibbs school s new york campus . the problems related to faculty qualifications and remedial course offerings . career education has since closed katharine gibbs school s new york campus . 32 california culinary academy which was purchased by career education in 1999 was the subject of an unfavorable article in the san francisco weekly focusing on alleged misrepresentations and omissions made to prospective students to enroll them in the school . 33 according to the chronicle of higher education a lawsuit was filed over the matter . 34 on november 1 2011 career education s chief executive officer resigned as corporate profits significantly fell and allegations were made involving inflated student placement statistics at its career oriented schools in new york . 35 36 over the year the stock value dropped about 48 % . 37 steve lesnik was appointed by the board of directors to serve as the new ceo . lesnik was a visiting lecturer at northwestern university and a director of the illinois math & science academy foundation . 38 several lawsuits were filed by investors who claimed they were defrauded . ceo gary mccullough was paid nearly 9.8 million in 2011 . 39 in 2013 career education corporation paid 10.25 million to settle the state of new york s claim that the company systematically deceived students by advertising bogus job placement rates . 40 in 2014 career education corporation was under investigation by more than a dozen states attorneys general although no charges were immediately filed . the company said it was cooperating fully with the request for information . 41 in 2014 the new york times reported that if the obama administration s gainful employment proposals were to go into effect 39 % of career education s programs would fail student loan debt to earnings measurements making them ineligible for federal funds . 42 in 2015 the us department of education reported that career education corporation schools were under heightened cash monitoring because of concerns about their finances or compliance with federal requirements . 43 in 2016 the securities and exchange commission requested documents information regarding career education s fourth quarter 2014 classification of its le cordon bleu campuses . 44 in 2016 the new jersey supreme court ruled that sanford brown students could sue career education corporation despite an arbitration clause in their contracts . the students claimed that they were misled and deceived . 45 downsizing edit in june 2007 career education announced that it would close the brooks college campuses in sunnyvale and long beach california and the pittsburgh branch of the international academy of design and technology . no new enrollments would be accepted and the final graduation dates would be september 2008 at the sunnyvale campus december 2008 in pittsburgh and march 2009 in long beach . 46 on february 2008 career education corporation announced that it would phase out operations of nine money losing colleges including several gibbs college campuses lehigh valley college and mcintosh college in new hampshire and to seek permission to convert two gibbs college locations to sanford brown college campuses . 31 on february 18 2008 ceco s american intercontinental university announced plans to gradually close down its los angeles campus . current students would have the opportunity to complete their programs but no new students would be enrolled . dr. george miller ceo of american intercontinental university said the impact of a two year probation coupled with the current market for aiu s programs in los angeles is such that the student population at the campus has decreased significantly and likely will not reach the sustainable level necessary to support the addition of new programs and necessary resources . 47 in january 2011 the company announced it would be laying off 600 people . 48 due to continued declining enrollment additional plans to lay off as much as 7 % of cec s workforce 900 jobs and close 23 schools were announced on november 8 2012 . 49 the corporation made the announcement as it reported a 33.1 million net loss for the third quarter of 2012 as well a 23 percent decline in enrollment from a year ago . the chicago sun times explained that a u.s. senate committee report last summer criticized for profit schools for focusing on their own profits above their students job readiness and for burdening students with loan debt at taxpayers expense . the scrutiny has hurt for profit college enrollment . 50 25 % of the current faculty at the california culinary academy were notified of their termination in mid november effective december 31 2012 . year over year student enrollment dropped 16 % from 2012 to 2013 . 51 in 2015 harrington college of design in chicago announced a planned closure . purchased by career education corporation in 1999 the school has experienced declining enrollment and will close permanently by august 2018 . 52 on may 7 2015 ceco announced the closure of its 14 remaining sanford brown colleges . teach outs of the remaining students were expected to take at least 18 months depending on their programs . 53 on december 16 2015 ceco announced that it would close all 16 le cordon bleu campuses in the united states . 54 ceco had previously placed the brand up for sale . 55 references edit legal terms and conditions . archive career education corporation . retrieved on may 8 2012 . career education corporation 2895 greenspoint parkway suite 600 hoffman estates il 60196 http finance.yahoo.com news career education corporation reports results 200500931.html https www.sec.gov archives edgar data 1046568 000156459016022343 ceco 10q 20160630.htm http static1.squarespace.com static 556718b2e4b02e470eb1b186 t 5600765de4b0b3ef2f01fa2b 1442870877865 careeded 2.pdf some things you just can t teach pdf . the new york times . 2005 05 15 . https www.sec.gov archives edgar data 1046568 0000950131 99 001568 . txt mr. john m. larson executive chairman