• Story alerts
  • Letter to Editor
  • Pin it

On December 3, a suit was filed in Arizona federal court charging that Bridgepoint Education is violating the Telephone Consumer Protection Act by using an automatic dialing system to send prerecorded messages to sales prospects. Similar suits were filed in October in federal court in San Diego and the Northern District of Ohio.

On December 9, Bridgepoint shareholders asked the federal Ninth Circuit appellate court to review the dismissal of a suit stating that a 2013 tender offer between Wall Street's Warburg Pincus, which controls the company, and Bridgepoint unfairly lined Warburg's pockets. The suit had been thrown out in in October by San Diego federal Judge Jeffrey Y. Miller.

Bridgepoint still faces numerous legal challenges. It is under investigation of New York, North Carolina, California, and Massachusetts and has paid $7.25 million to the Iowa attorney general. The Securities and Exchange Commission is looking at documents related to the company's financial restatements of 2011 through 2013. A Department of Education Office of Inspector General probe is still underway, according to the company's most recent quarterly report to the Securities and Exchange Commission. There are also several shareholder complaints pending.

  • Story alerts
  • Letter to Editor
  • Pin it

More from SDReader

Comments

monaghan Dec. 11, 2014 @ 2:23 p.m.

Better late than never: I just now learned that Tim Geithner, former Secretary of the Treasury during and after the 2007-08 meltdown and Great Recession, heads the private equity firm that is 63% owner of scam "education"provider Bridgepoint. I'm not "Casablanca" shocked, shocked: I truly am stunned and depressed by this year-old news.

0

Don Bauder Dec. 11, 2014 @ 6:40 p.m.

monaghan: Yes, Geithner's joining Warburg Pincus as president was announced around a year ago. I don't remember whether I made a comment that Warburg controlled Bridgepoint. If I didn't, I should have. Best, Don Bauder

0

monaghan Dec. 12, 2014 @ 12:20 a.m.

You did mention it, Don, I read it here, looking at past stories about Bridgepoint.

Layer upon layers of ownership, complicity in management of questionable enterprises and a smoothly revolving door between government service and private corporations confound the person who seeks to understand the way capitalism works.

0

Don Bauder Dec. 12, 2014 @ 8:05 a.m.

monaghan: Wall Street controls the federal government -- particularly the SEC and Justice Department -- through the revolving door. People in the SEC get a high-paying job at a white shoes law firm in payment for getting one of the firm's crooked clients off the hook. The same kind of thing works with other agencies such as the FTC and FCC.

When a top lawyer or banker leaves the company to go into government, the former employer keeps his or her pay at the same private sector level, knowing that he or she will return after corrupting government.

A classic example of Wall Street's control of Congress is going on now. Citigroup slipped into the spending bill (which has to pass lest the government close down) the most noxious proposed legislation I have seen in a long time. If the bill passes the Senate as it was written in the House, the big banks will be able to gamble on derivatives with money from the Fed, and will get a bailout from taxpayers if their gambling goes south.

Dodd-Frank had eliminated this: a bank now has to put its derivatives trading in a separate entity that cannot be bailed out by taxpayers. But the banks slipped this in at the last minute so we can do a rerun of 2008/2009 -- you and I paying for the banks' bad bets.

In his desire to get the spending bill through, Obama wants this abominable provision to remain in the bill. He lobbied the House to get Democrats to vote for it. Most didn't, but enough did that it passed. You will be swindled by a provision buried in a huge bill. That's how Wall Street controls the government.

And Wall Street and solons claim they believe in capitalism. Best, Don Bauder

0

Twister Dec. 12, 2014 @ 10:06 p.m.

Window-dressing, window-dressing, window-dressing.

0

Don Bauder Dec. 13, 2014 @ 8:04 a.m.

Twister: I have been writing for decades that the nation spends more money on corporate welfare than on social welfare. Back in the 1980s and 1990s, many people disagreed with me. After the bank bailouts, I don't get arguments anymore. Best, Don Bauder

0

Twister Dec. 13, 2014 @ 2:40 p.m.

Verily, thou art a prophet at a trade with disproportionately small profit. How you scraped your million together would be a lesson for all of us.

0

Don Bauder Dec. 13, 2014 @ 6:47 p.m.

Twister: No profits for prophets? Financial journalism is not as remunerative as many fields, but it is very satisfying. Best, Don Bauder

0

Twister Dec. 17, 2014 @ 1:42 p.m.

Aw, I wuz incinerating that despite the slangs and errers flung at jernalists when they actually practice their craft as it should be, that you are so #uckin smart that you are rollin' in dough anyways . . .

0

Sign in to comment

Join our
newsletter list

Enter to win $25 at Broken Yolk Cafe

Each newsletter subscription
means another chance to win!

Close