Corinthian Colleges, a for-profit education company based in Santa Ana, made gains this year that shot its stock price up 12.1 percent as of the close of trading Monday. But those gains were gone by Tuesday.
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That's when a Securities and Exchange Commission (SEC) investigation into the firm's student-recruitment practices became known by New York Stock Exchange traders.
Shadiness at Corinthian Colleges is not news to Weekly readers who've been treated to reports on diploma milling, worthless degrees and whistleblower lawsuits:
OC Weekly Corinthian Colleges archives
The stock dive followed Corinthian revealing in a filing Monday that the SEC issued a subpoena for documents related to student recruitment, attendance, degree completion, job placement, loan defaults and compliance with U.S. Education Department rules.
The company indicated it is cooperating with the feds.
Shares on Tuesday dropped as much as 18 percent to $2.28 before rebounding slightly to finish at $2.47, an 11.5 percent swoon. It was down to $2.35 by Wednesday afternoon.
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OC Weekly Editor-in-Chief Matt Coker has been engaging, enraging and entertaining readers of newspapers, magazines and websites for decades. He spent the first 13 years of his career in journalism at daily newspapers before “graduating” to OC Weekly in 1995 as the alternative newsweekly’s first calendar editor.