Instead of being a model for how a predatory for-profit could become a non-profit, as the Department of Education had publicly hoped, so far ECMC looks like a pioneer in running a predatory non-profit. Among other things:
•Zenith's student enrollment agreements resemble the one-sided predatory agreements required by Corinthian.
•Zenith's initial agreements with the Department of Education somehow exclude Zenith's repeated public promise to be bound by the gainful employment rule.
•Zenith job announcements for admissions representatives have strongly reflected the sales job mentality that has driven predatory for-profits.
•Zenith has not met its commitment to post on its websites the names and credentials of its teachers.
•Zenith's board of directors is made up entirely of ECMC board members, and these are highly compensated board members, not the kind of independent board that helps ensure integrity at non-profit colleges.
•Zenith did not hire a single permanent senior executive with an education or training background until this month.
•Zenith has hired many of the top management officials from Corinthian, not just Diana Scherer, but fellow Senior Vice Presidents Rick Simpson (Chief Academic Officer) and Rob Kenyon (Chief Accounting Officer).
Borges' letter informs DoJ that other Corinthian records are now in warehouses controlled by state agencies overseeing for-profit colleges in California, Arizona, Hawaii, Oregon, and New York. The letter expresses particular urgency regarding the California agency facility, also located in Sacramento. According to Borges, the lease on part of the warehouse, containing 388 "large speed-pack boxes," each weighing about 500 pounds "that were quickly filled with leftover paper documents as the campuses were being closed and vacated" expires on August 31. Borges further warns, "Security is a potential concern at the warehouse, which does not appear to be locked at all times.... We point this out only to emphasize the merit in making a rapid determination as to whether you are interested in inspecting, copying or retaining any of the above-described records in the warehouse."