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Bridgepoint Education announced today (Jan. 25) that the Massachusetts attorney general is investigating whether the company's business practices comply with the state's consumer protection laws. Bridgepoint recently settled with Iowa for $7.25 million and is under investigation in California, New York, and North Carolina.

The multistate investigation was revealed in a filing with the federal Securities and Exchange Commission. Bridgepoint also said today it has received a subpoena from the SEC relating to accounting practices. This results from Bridgepoint's earlier announcement that it is revising financial statements for the years 2011 and 2012 and that its internal controls are weak. The company said it will cooperate with both Massachusetts and the SEC.

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Comments

Don Bauder July 26, 2014 @ 6:51 a.m.

OOPS. Somehow I said Jan. 25. I meant July 25. Mea culpa. Don Bauder

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aardvark July 26, 2014 @ 9 a.m.

Don: I imagine they were having trouble on January 25th as well.

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Don Bauder July 26, 2014 @ 10:27 a.m.

aardvark: Bridgepoint has been trouble with federal and state investigators for some time. Best, Don Bauder

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Visduh July 26, 2014 @ 9:12 a.m.

With these individual states going after the company, it may die "the death of a thousand cuts", or at least a hundred cuts. So, whereas the feds, financing the whole thing, are not taking action, the outcome may the same, and the company put out of business. Its admission of faulty accounting is unusual, in that the scammers don't generally admit anything until the operation has failed completely. The news is good (not for the company, but for the public and taxpayers), and the investment community is growing more skeptical all the time, as reflected in the stock price.

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Don Bauder July 26, 2014 @ 10:38 a.m.

Visduh: Bridgepoint is being investigated by the Department of Education and Consumer Financial Protection Bureau on the federal level, as well as by the states named. The Senate Health, Education, Labor, and Pension Committee (HELP) cocked an extremely critical eyebrow at the company a couple of years ago, and has requested more information from it.

Bridgepoint stock is weak, along with stocks of other for-profit schools. Bridgepoint's revenue and earnings are being hit. It has been losing money of late. Its money comes from the federal government -- Pell grants and military, in particular. Following the HELP committee's case study of Bridgepoint, Sen. Tom Harkin called it "an absolute scam."

The San Diego business establishment continues to adore the company. Best, Don Bauder

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eastlaker July 27, 2014 @ 2:39 p.m.

Don, does the SD business establishment adore Bridgepoint because Ashford is the name underwriting events here, such as the Symphony's Summer Pops series and some bowl games?

Would there be any lingering respect if the cash outlays were to stop?

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