Elizabeth Warren: SEC settlement with for-profit college executives is an 'insult' to students

[Omaha Steve]

In a letter to SEC chairman, Jay Clayton, Warren and colleagues asked for the rationale behind the deal


A group of Senators led by Elizabeth Warren slammed the agency’s deal with the former executives of a now-defunct for-profit college.

By Jillian Berman
Published: Mar 6, 2019 11:12 a.m. ET

When Corinthian Colleges collapsed in 2015 under the weight of allegations the for-profit college misled students about job placement and graduation rates, it left thousands of students with debt and few palatable options.

Nearly four years later, some of its executives are facing the consequences of their alleged role in the school’s collapse, but a group of Democratic Senators led by Elizabeth Warren say they’re barely being held accountable.

Warren and her colleagues sent a letter to Jay Clayton, the chairman of the Securities and Exchange Commission, asking for “an explanation of the rationale” behind what they described as a “weak settlement” between the SEC and Jack Massimino, Corinthian’s former chief executive and Robert Owen, it’s former chief financial officer.

Massimino will pay $80,000 and Owen $20,000 to settle claims that the two failed to disclose risks to the company’s primary source of revenue — federal financial-aid funds — to the public and investors.

FULL story: https://www.marketwatch.com/story/elizabeth-warren-sec-settlement-with-for-profit-college-executives-is-an-insult-to-students-2019-03-06

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1. Too rich to jail

White collars with resources write the rules.