While the world waits to see what happens to the leadership and policies of the Consumer Financial Protection Bureau, the head of another federal financial regulator has made it clear that she will be stepping down after President Obama leaves office, even though she could have stayed on in the office for several more years. [More]
When a business is doing something shady and illegal, often the best-placed people to know about it are the employees who are supposed to carry it out. That’s why there are laws in place to protect whistle-blowers who report their employers to the appropriate authorities… and breaking those laws can sometimes land a company in as much trouble as doing the thing an employee would report them for to begin with.
Nearly two weeks after Tesla announced the first fatal crash in one of the company’s electric vehicles while operating in semi-autonomous Autopilot mode, federal regulators are reportedly investigating whether the carmaker was forthright with offering information about the crash to investors. [More]
Overdraft fees cost consumers an average of $32 billion each year. The hefty fees and their often less-than-transparent policies, which vary greatly between banks and financial products, have long garnered the ire of consumer advocates and federal regulators. Case in point: a Minnesota-based bank is now under investigation for possibly unfair and deceptive practices related to its overdraft program. [More]
The federal government has ramped up its efforts to protect consumers from unfair and deceptive for-profit colleges in recent years: implementing so-called gainful employment rules this summer, discharging millions of dollars in student loans for students who were defrauded by Corinthian Colleges and restricting the University of Phoenix’s ability to participate in tuition-assistance programs for active-duty servicemembers. Still, these steps appear to have done little to keep questionable for-profit colleges from getting their hands on billions of dollars in funding straight from the government. [More]
Things don’t appear to have gotten better for for-profit college operator ITT Educational Services since it announced in September 2014 that it was under increased scrutiny from federal regulators, as the owner of the ITT Technical Institute chain revealed on Monday that the Department of Justice is looking into whether the company defrauded the federal government. [More]
When a company says it’s moving a whole lot of products, that could mean that its sales are booming. The thing is, just because a business might be shipping a lot of products, that doesn’t necessarily mean it actually sold as much as it’s sending to distributors. To that end, the Securities and Exchange Commission is investigating beverage giant Diageo — the company behind brands like Smirnoff, Guinness, Johnnie Walker and more — for allegedly artificially boosting its sales by shipping excess inventory to distributors.
Following the Securities and Exchange Commission’s decision earlier this week to file fraud charges against current and former executives with ITT Education Services – the operator of for-profit college chain ITT Technical Institute – for their part in concealing problems with company-run student loan programs, one legislator is calling on the Department of Education to further investigate the company. [More]
Back in September ITT Educational Services – the operator of for-profit college chain ITT Technical Institute – revealed it was facing increased scrutiny by several government agencies. That scrutiny turned to action this week as the Securities and Exchange Commission filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. [More]
In football, a cornerback is tasked with defending against pass offenses. It appears one former NFL player wasn’t doing much defending on behalf of investors off the field. Instead, the Securities and Exchange Commission alleges former New York Giants player Will Allen used his big league connections to assist in the operation of a $31 million Ponzi scheme based on making loans to cash-strapped pro athletes. [More]
Any hope founder of American Apparel Dov Charney had of returning to the company may have gone out the window this week, after it was revealed that the Securities and Exchange Commission opened an inquiry into the circumstances leading to his departure. [More]
Embattled for-profit college operator Corinthian Colleges Inc. — the company behind the Everest, WyoTech, and Heald College chains — is set to be delisted from the Nasdaq stock exchange Tuesday after it failed to meet a deadline to file quarterly earnings reports.
Could ITT Educational Services be the next large for-profit company facing collapse? Things might not be that dire for the parent company of ITT Technical Institute, but the institution recently revealed it’s under increased government examination that could result in the loss of federal funds. [More]
When a company breaks its promise of securing your personal information, that’s a problem. When the company does so for three years and used consumer trading data for its own benefit, that elicits a hefty fine from U.S. regulators. [More]
Bitcoin has recently been dominating the headlines with stories about the possible outing of the mysterious inventor, college groups handing out the virtual currency to students and some kind of new cologne. But for all the popularity the new form of payment has garnered, the Securities and Exchange Commission is warning investors of the dangers posed by the currency. [More]