Action against Defendants, two former executives of a now defunct public company that operated for-profit schools, for their roles in the company’s alleged failure to disclose material regulatory risks in public filings.  According to the SEC, the company improperly inflated its long-term debt in financial submissions to the Department of Education.  The SEC alleges that Defendants failed disclose in public filings that the inflation could affect the company’s access to education funds.  Defendants have agreed to pay civil penalties of $80,000 and $20,000 respectively.

SEC Complaint

SEC Litigation Release