The below is part of the stock holders meeting for Career education corp. which owns SBI.
Here is the link where it was found. The link contains question and answer session by news paper reporters.
But despite what I view as very good work by our teams to do the right things in the right way, we've recently uncovered a situation that goes against what we stand for as a company, and I want to give you some background on that matter. The company recently identified improper practices at certain Health Education segment schools related to the determination of placement rates. The discovery came as part of the efforts being undertaken by our company with respect to the information request CEC and a number of other companies received from the New York Attorney General in May. Upon a receipt of the New York Attorney General's subpoena, consistent with strong, effective corporate governance, we engaged outside legal counsel of Dewey & LeBoeuf to help coordinate our response. When our management team identified improper practices, the Board of Directors directed Dewey & LeBoeuf to undertake an independent investigation around these practices. I can assure you the independent investigation will be thorough. Once it's completed, the company will undertake any remedial measures we conclude are needed to ensure our people understand and execute in accordance with our well-defined and often-stated expectations.
While the instances of improper practices discovery relate to certain Health Education segment campuses, the board and I have asked independent legal counsel to also review placement rate practices at all of our domestic schools. The results of the investigation will be reported that New York Attorney General and to other relevant accrediting and governmental bodies as appropriate.
For me, as the leader of our company, these findings I described are very, very disappointing. The actions of the few people have let down others who worked hard and responsibly every day on behalf of our students. As you may know, I spent a few years in the U.S. Army as an officer, and my father spent 30 years in the Army. And when I was young, he taught me a collection of words that I later found out are part of the cadet prayer at West Point. The idea behind them is simple, but profound, I think. And that is that, "One should," and I quote, "Choose the harder right instead of the easier wrong." In this case, it appears some people in our company didn't do that. This type of behavior is not what CEC is all about and given that, we'll redouble our efforts to ensure that every single one of our employees acts with the utmost of integrity, on behalf of, and in support of our students.