In 2019 the Federal Trade Commission sued the parent company that owned Colorado Technical University. What the public case file says, and what it does not.
The Federal Trade Commission sued Career Education Corporation and several subsidiaries in federal court in the Northern District of Illinois. The case is Federal Trade Commission v. Career Education Corporation et al., civil action number 1:19-cv-05739, and the FTC's file number is 152 3264. Among the named defendants is Colorado Technical University, Inc., and a related entity, Colorado Tech, Inc. [1]
The FTC's case summary says the company, through its lead generators, used marketing tactics that the FTC alleged were deceptive. It lists these alleged practices: falsely telling consumers they were affiliated with the U.S. military; using unlawful tactics to generate leads; inducing consumers to submit information under the guise of providing job or benefits assistance; falsely telling consumers their information would not be shared; and calling consumers registered on the National Do Not Call Registry. [1]
These are the FTC's allegations as summarized on its case page. The order states that the defendants neither admit nor deny the allegations in the complaint, except that they admit the facts needed for the court's jurisdiction. The order is therefore a settlement, not a finding by the court, and neither the case summary nor the order establishes that any particular student was harmed. [4]
The order's signature block for the judge is dated 2019, and the defendants' signatures are dated 2019. The FTC case page lists a filing labeled "Stipulated Order for Permanent Injunction and Monetary Judgment" with a timeline date of June 17, 2020. That date conflicts with the 2019 signatures and should be confirmed on the court docket before it is cited. [1][4]
A separate settlement with state attorneys general covered the same company. A Nebraska Attorney General press release describes debt relief for students of the company's schools. The release is the only source reviewed for this section, so the amount and terms should be confirmed from the court filings before they are repeated. [2]
[1] Federal Trade Commission, case page for FTC v. Career Education Corporation et al., file number 152 3264, civil action 1:19-cv-05739 (N.D. Ill.). https://www.ftc.gov/enforcement/cases-proceedings/152-3264/career-education-corporation
[4] Stipulated Order for Permanent Injunction and Monetary Judgment, FTC v. Career Education Corporation et al. (N.D. Ill.). https://www.ftc.gov/system/files/documents/cases/de_11_-_stipulated_order_for_permanent_injunction.pdf. Read by OCR from scanned pages; the caption case number reads "19cv5139" in OCR and should be checked against the docket.
[2] Nebraska Attorney General, press release on the multistate settlement with Career Education Corporation, January 2019. https://ago.nebraska.gov/sites/ago.nebraska.gov/files/doc/2019-01-09%20CEC%20Press%20Release.pdf
[3] Letter to the U.S. Department of Education regarding Colorado Technical University and American InterContinental University, March 24, 2021. https://vetsedsuccess.org/letter-to-the-education-department-re-colorado-tech-u-and-american-intercontinental-u/