featured pciture of former Senator from Maine, Olympia Snowe and formerMaine Gov. John McKernan, Snowes husband
Education Management Corporation (“EDMC”)  is a Goldman Sachs operation, extracting as much from the working class as they possibly can.  The stock has dropped nearly 60% in th last four months as enrollements drop (and consumers learn more about the fraud perpetuated by these schools).
CorporationsMajorHandHigherEducation
As I wrote  in March 2012 regarding Olympia Snowe, former Senator from Maine::
“Snowe’s announcement she will not seek another term in the Senate may have little to do with “civility” or “loss of the center” within contentious politics and more to do with the fact her husband is knee-deep in controversy over an educational for-profit college chain know as Educational Management Corporation or Wall Street ticker (EDMC).Snowe’s husband is former Maine Gov. John McKernan, and he is currently the chairman of the board of directors of EDMC and former CEO of what is the second-largest owner of for-profit colleges in the country.

The for-profit educational retail chain has been sued by the Justice Department and eleven states, based on allegations that the firm falsely reported to government officials that it was not basing recruiter salaries on incentives, which is an illegal ploy the for-profits have used to increase enrollment. The government alleges that they did use incentive pay for recruiters.

If the allegations are proven, then EDMC will be held liable for the theft of billions in government funds from Title IV. This could raise some eyebrows regarding McKernan’s role as CEO during the time that the company allegedly received Title IV monies illegally and could subject the former governor of Maine to criminal liability.

The Sunlight Foundation reported:

According to the senator’s most recent financial disclosure form, she and her husband, former Maine Gov. John McKernan Jr., have investments worth between $2 million and $10 million in Education Management Corp., a Pittsburgh-based company that operates for-profit higher education institutions.

Snowe’s husband owns more than 835,000 shares in the company, worth more than $14.9 million at current prices. That was up from the 128,000 shares he owned when he became CEO in 2003

 

The influence-mapping web site Muckety provides a stunning chart that details both Snowe and McKernan’s political and economic ties to the for-profit educational company” ((http://truth-out.org/news/item/8160-why-olympia-snowe-really-resigned).).

 

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That was back in 2012.  Why is the company still allowed to exist and why have there been no prosecutions?
I found this entry from a former EDMC employee who was harassed after finding out the true story. It’s at http://www.indeed.com/cmp/Edmc/reviews
“WORST WORK EXPERIENCE OF MY LIFE”
Admissions Rep - Art Institute Online (Former Employee), Pittsburgh, Pa. – April 13, 2013
Pros: high pay
Cons: short work life; high anxiety; greedy managers & upper mgmt..etc
“I have NEVER worked for a place like EDMC in my life. I’ve always had positive work experiences and my employers were always sad to see me leave and often invite me to work at the company again from time to time. But EDMC is the worst place to work……they find out what you really know about the dishonesty, the cost and the morality of putting students – more… into this horrible situation.
If you are smart enough to figure it out early, then you are targeted for the opportunity to get you out of there before you let any other employees know what is going on. They criticize you for things that you would never dream would be cause, they micro manage and listen to your every word when on the phone or speaking to co-workers and wait to pounce on you. If you speak up in meetings to say what is on your mind, you add another dart to your time there. If you ask, “How can these students attend an online college when they have no computer….some of my students didn’t even have a place to live….you have a dozen darts in your profile and they are desperate to get you out.
EDMC is causing students to ruin their lives and credit and they are stealing from the government, and in turn, the taxpayers. Most of these online students would have a very difficult time surviving in a Community College for about a tenth of the money.
Most of these online students cannot write a one paragraph essay without many grammatical and spelling, punctuation, capitalization errors. They fail out of their first introductory class due to not being able to do the work or not having a computer and the Admissions Rep takes the wrap for it. They want the Admissions Rep to keep the students in long enough to get the first financial aid payment dispersed to the school. The student then fails, owes the money and EDMC has been paid. The student defaults on the loan and the Admissions Rep can be fired if they didn’t keep the student in class until that all takes place. Many more horrible incidents….you have NO IDEA! Many employee’s lives have been ruined and even worse…some were destroyed.
And about $100K for a degree in Fashion & Retail Management (not fashion design) or to become a Restaurant Mgr when you could get on the job training for those careers is a disgrace.”