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Feds end probe of Career Education Corp.

WASHINGTON -- The U.S. Department of Justice has notified Career Education Corp. that it is dropping a grand jury investigation into the company without bringing charges, the company announced.

The company, the country's largest for-profit provider of post-secondary education, said the Justice Department said it has closed its three-year grand jury investigation of the company with no action taken against the company. The Justice Department's Chicago office was investigating allegations that that some of the company's colleges had made false claims or states to the federal Department of Education.

Career Education said it believes the Justice Department's Civil Division of the Justice Department continues to review allegations of false claims or statements. The company operates 75 campuses around the country.

The company said it has fully cooperated with the request for information and has voluntarily responded to the review, which the department has indicated is informational.
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Title Annotation:CAPITOL briefs
Author:Pekow, Charles
Publication:Community College Week
Date:May 7, 2007
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