Two former executives at a company that operated for-profit schools agreed to pay $100,000 to end an SEC suit accusing them of failing to disclose material risks.
Jack D. Massimino and Robert C. Owen hid Corinthian Colleges Inc.'s practice of inflating a metric used for accessing federal student aid, the Securities and Exchange Commission said in a Feb. 25 complaint filed in the U.S. District Court for the Central District of California.
Massimino served as Corinthian’s CEO, while Owen was the company’s chief financial officer. Corinthian filed for bankruptcy in 2015.
Corinthian had to submit financial information to the U.S. ...