Thread regarding Education Management Corporation layoffs

Opening a tax exempt non profit presided over by the chairman of the board of a for profit which exists exclusively to financially benefit the for profit, IS NOT SHADY AT ALL. Incentivising for profit employees to "donate" to the said non profit is also NOT SHADY, it's just an innovative way to handle the payroll. If this helps us maintain compliance with the 90-10 rule, well that's just a happy accident, just ask one of our 20,000 lawyers that we don't need because we never do anything wrong. The truth is we are driven to help students, or at least 25% of them, earn an advanced degree. We find allegations to the contrary outlandish, and frankly rude. And, as an aside, we feel really bad about laying off all those nice people who donated to our charity.

Both ECMC and Zenith are non profits, so that's fine. From what I understand, state run schools have similar arrangements. However, a non profit, tax exempt charity funneling money to a for profit school is, in this case, an open invitation for a visit from the IRS. Just how long did EDMC think they could get away with this deception? It's called fraud. It's called money laundering.

This seems very similar to what ECMC is doing with grants to Zenith Education students. Non-profit ECMC supposedly puts millions of dollars in a Grant fund for students trying to enroll in the Zenith schools. If a prospective student can't get the entire tuition financed and their parents make under a certain amount of money the student can apply for a grant from ECMC. They can get away with it because Zenith Education Group is classified as a non-profit education company and are not restricted by the same regulations as the for-profits.

C'mon Hustables. This has got to be a slush fund. What sort of humanoid writes a check to a charitable foundation run by EDMC? Except maybe the EDMC alumni association.

The two best lines in that article are:

“If the Coca-Cola Foundation’s purpose was to give grants to people to buy Coke, that would not be seen by the IRS as an appropriate use of the charity,” said Robert Shireman, a former U.S. Department of Education."

Some quoted in the article speculate that the foundation helped EDMC appear to comply with the 90-10 rule, which requires for-profit colleges to show that 10 percent of their revenues are coming from sources other than federal aid."

Ai's leadership is from Phoenix University, the king of scam artists, yet people are surprised they're pulling this sh--? What's most troubling is the Ai brass is believing their own bullshit.

Robin Williams was once quoted as saying, "An alcoholic will steal your car keys and feel bad, and a junkie will steal your car keys and help you look for them." Ai leadership is the former.

Heads would really roll if people saw how Imagine America is awarded to students. It is given to students who have a gap or can't afford payments. WAS encouraged and pushed by admissions 99% of the time. At least Education Foundation had a screening process

As an employee, we were highly encourages to donate to this"foundation". They even offered us the lovely benefit of taking a donation out of each paycheck! How kind of them.

Too bad we have to remain anonymous. I would love to share my story with you and hear yours as well.

$hittiest school ever. Students should be paying Google instead of AI.

Federal

My curiosity got the better of me, is EDMC being investigated the state or federal level?

1hxe, you've been pretty active on this forum as of late. With regard to this Charity / EDMC problem, I don't believe for one second that you don't see the conflict of interest and obvious attempt to skirt rules and regulations. When this is all over and EDMC has sunk beneath the waves, I'd really be interested in hearing your story. Who hired you, why did they hire you, all that good stuff. Mostly, I'd like to know what they hoped to gain by hiring you. Maybe you volunteered. Regardless, there is now an investigation under way, and believe me 1hxe, it's not worth having a heart attack over.

That's it... I must be on the payroll if I have a dissenting opinion. Brilliant! You figured me out!

Actually, I am just not buying into the accusations of those, like Halperin, who are on a witch hunt against EDMC in particular and for-profit education in general. I challenge the nay sayers to take a class and see for themselves that the quality is there.

I happen to know that the article is a pretty solid piece of journalism. It's laying out a case for investigating the link between this Charity and EDMC. That's pretty much all it can do. The big question here is why 1xjc is so strenuous in defending EDMC. By now it's pretty obvious you're being paid to make these comments.

What do you know? Come on, spill it.

Proof of what? Innocence? It doesn't work that way.

The article doesn't even accuse EDMC of anything. It only contains suggestions that something shady may be going on. Garbage!

You lack proof Moonlighting.

There is NO proof in this article. As far as I know, we still live in America where proof is required for a conviction. As I stated all along... this report lacks merit. Well, maybe I didn't say that before but I meant to.