There's No Nice Way To Say This: John Kline Takes Bribes From Crooked For-Profit "Colleges"

We’ve talked a lot about how DCCC chairman Steve Israel refuses to target any Republican leaders or policy makers, including GOP committee chairs, even ones in vulnerable blue-leaning districts. MN-02 south of Minneapolis/St Paul is a good example. In 2008, Obama beat McCain there by 10,000 votes. Four years later it was much closer but he still beat Romney in the district, which had also voted for Amy Klobuchar in 2006 and 2012 and for Al Franken in 2008. All those blue victories don’t guarantee a Democrat can beat John Kline— not even this poll showing Mike Obermueller leading him 42-38% is a guarantee. But it takes an exceptionally venal and incompetent DCCC chair to interpret that information as meaning Democrats shouldn’t even fight in MN-02. Meet Steve Israel— venal, incompetent and corrupt.

This cycle, Kline had raised $2,185,735 by the July 23 FEC filing deadline, most of it special interest money— and only 6% in small contributions. Chairman of the House Education Committee, Kline’s single biggest source of cash is… the education industry— $250,849, more than double his second biggest contributor industry (the banksters). His single biggest donor this year is Apollo Education Group (University of Phoenix) for a nice $28,100. Other for-profit “universities” which profit by ripping off their students that contributed big bucks to Kline include Itt Educational Services, Globe University, Full Sail University (owned by TA Associates, a private equity firm), Herzing University, DeVry, Education Management Corp, Association of Private Sector Colleges and Universities, Capella Education and his pals at Corinthian Colleges, a real doozy of a criminal enterprise.

Who remembers when Boehner took over the Speakership and said he wouldn’t tolerate any corruption from the Republican caucus? Apparently he doesn’t either. Kline wouldn’t return any of the legalistic bribes he gets from these crooks and won’t stop letting them craft predatory legislation for his committee to protect their own special interests while preying on students and their families. When the latest Corinthian scandal erupted in August, it was suggested that Kline disassociate himself from the scandal by getting rid of the money Corninthian had given him. This is what Mike Obermueller had to say when Kline refused:

"Last week, I challenged John Kline to donate the $10,000 he's received in campaign cash from those associated with the unscrupulous and legally embattled Corinthian College to a non-profit that would help students actually get a real college education. After more than a week of waiting, Kline has refused to act, demonstrating yet again that he chooses to prioritize himself over the interests of students.

"Congressman Kline should not be funding his campaign with money from people or organizations who willingly act in predatory ways toward students. Apparently, John Kline disagrees.

"Since he refuses to move forward legislation that would help students obtain the transparency they deserve, he should at least live up to the high standards of a committee chairperson and counter the perception that this school has purchased his allegiance.”

Corinthian has been subpoenaed by an Orange County grand jury. So far, John Kline hasn’t been.

The subpoena requests a broad range of documents and records related to the company's job placement rates, graduation rates and marketing materials used to recruit students. The Santa Ana firm has previously received subpoenas and similar document requests from state attorneys general, the Securities and Exchange Commission and the federal Consumer Financial Protection Bureau, but Wednesday's announcement was the first to signal the possibility of a federal criminal inquiry.

The subpoena, issued Friday, is the latest in a string of headaches for Corinthian, which announced last month that it would sell 85 of its 107 campuses and online programs amid heightened scrutiny from the U.S. Department of Education.

A company spokesman, Kent Jenkins, said in a statement that Corinthian would cooperate with the request, but added that the company is prepared to "vigorously defend its policies, practices and track record of serving students effectively."

Corinthian operates schools under the Everest College, WyoTech and Heald brand names. Nearly a quarter of the company's campuses are based in California— more than any other state.

The for-profit college industry has faced greater scrutiny from federal and state authorities in recent years, as attorneys general and federal investigators allege that some schools are aggressively targeting low-income students who are eligible for the maximum in federal aid.

The Obama administration in March proposed new rules for the industry and other vocational schools that are intended to weed out bad actors that leave students with enormous debts and few job prospects.

Other companies have faced declining enrollments in recent years, but Corinthian's recent troubles far outweigh those of its peers.

Over the last year, Corinthian has been inundated with investigations by state and federal authorities into its business practices, including concerns that employees falsified job placement rates and student attendance records to retain access to federal student loans and grants— the lifeblood of company profits.

The U.S. Department of Education set its sights on Corinthian in January, requesting extensive data and documentation to justify the company's job placement rates. In June, the Education Department contended Corinthian had failed to provide the information as requested, and put a 21-day hold on the company's access to federal student aid.

The sanctions put Corinthian on the brink of collapse. Last year, the company received nearly 85% of revenue from federal loans and grants.

In a June regulatory filing announcing the financial penalties, the company told investors it might have to shut down without additional funds. Amid declining enrollments and problems with an internal student lending program, Corinthian had already been struggling with cash flow this year.

In early July, Corinthian agreed to sell of most of its schools and close a dozen of them in a deal with U.S. education officials.

Patrick Fitzgerald, a former U.S. attorney in Chicago, is serving as an independent monitor overseeing Corinthian's operations.

Corinthian is also facing a lawsuit filed by California Atty. Gen. Kamala Harris last October. Harris' office alleged a wide range of fraudulent behavior, including having financial arrangements with temp agencies to count students as being "employed." Job placement rates are a key marketing tool for recruiting new students, and are crucial to maintaining accreditation and access to federal aid.

That lawsuit is ongoing. Corinthian faced a similar lawsuit from the California Attorney General's office in 2007. The company settled the case for $6.5 million, admitting no wrongdoing.

This is the Republican Party vision of education— crooked businessmen looking to lure students into worthless fake universities that benefit the businessmen and leave everyone else high and dry. Veterans have especially been targeted And John Boehner gave the job of overseeing the whole scam to John Kline. Solution? Replace John Kline with Mike Obermueller in 4 weeks. Bill Maher will be in MN-02 tomorrow to kick off his ground campaign to defeat Kline. He’s been zeroing in and taking Kline to task for being in the pocket of the student loan industry and for-profit education lobby. Kline has continually voted to raise student loan interest rates and let for-profit education institutions take advantage of students. Most voters in the district don’t know this. Hopefully Maher will see to it that voters in the suburbs south of the Twin cities, in Eagan, Northfield, Apple Valley, Red Wing and Cottage Grove find out what their congressman has been up to.