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Federal Trade Commission, Plaintiff, v. Career Education Corporation, a corporation; American Intercontinental University, a corporation; AIU Online, LLC, a limited liability company; Marlin Acquisition Corp., a corporation; Colorado Tech, Inc., a corporation; and Colorado Technical University, Inc., a corporation, Defendants.
FTC Matter/File Number
152 3264
Civil Action Number
Enforcement Type
Federal Injunctions
Federal Court
Northern District of Illinois

Case Summary

Career Education Corporation (CEC) and its subsidiaries, American InterContinental University, Inc., AIU Online, LLC, Marlin Acquisition Corporation, Colorado Technical University, Inc., and Colorado Tech., Inc. (collectively, CEC), has been ordered to pay $30 million to the FTC to settle Federal Trade Commission charges that the operator used sales leads from lead generators that falsely told consumers they were affiliated with the U.S. military, and that used other unlawful tactics to generate leads. CEC’s lead generators also induced consumers to submit their information under the guise of providing job or benefits assistance. The FTC also charged that CEC’s lead generators falsely told consumers that their information would not be shared, and that both CEC and its lead generators illegally called consumers registered on the National Do Not Call (DNC) Registry.

The Federal Trade Commission is sending nearly $30 million in refunds to people tricked by agents working on behalf of Career Education Corporation (currently operating as Perdoceo Education Corporation), the operator of several post-secondary schools.