WASHINGTON — The Education Department says it will fine Heald College $30 million, alleging the Corinthian Colleges subsidiary had engaged in egregious misconduct and misled students.
Corinthian, a massive for-profit educational institution, collapsed last summer amid a cash shortage and fraud allegations.
The department alleged that Heald, based in San Francisco, had shown a pattern of falsifying post-graduation employment data. In one instance, the department said, the company's Honolulu campus declared that a graduate had found work in her chosen field of accounting — even though administrators knew she was working at Taco Bell.
Corinthian spokesman Joe Hixson called the allegations "highly questionable."
The penalty is the largest ever levied by the department, but may not be collected. Corinthian's once billion-dollar stock is virtually worthless, and the company faces numerous legal claims.