For-profit owner agrees to dismiss CEO, CFO as part of Education Department settlement
Natalie Schwartz
February 8, 2024
The agreement stems from accusations that International Education Corp.’s colleges violated federal student aid regulations.
Dive Brief:
International Education Corp., a for-profit college owner, agreed to oust two top executives to settle matters related to alleged violations of regulations that allow students without high school diplomas or GEDs to receive federal financial aid, according to a Thursday announcement from the U.S. Department of Education.
IEC must provide proof within 60 days of the settlement agreement that it no longer employs Fardad Fateri, IEC’s chief executive, and Sanjay Sardana, its chief financial officer, according to the deal. The Education Department said Thursday that the duo led the company during “the widespread wrongdoing.”
The settlement comes after the Education Department pulled Title IV federal financial aid access from IEC’s Florida Career College, which recently announced plans to shut down by mid-February. The agency accused FCC officials of violating the rules around ability-to-benefit testing, which measures if students who didn’t finish high school or the equivalent would benefit from a college education.
