Newspaper probes for-profit colleges, foundation


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PORTLAND, Maine (AP) — Questions are being raised about the use of a tax-exempt charitable foundation that provided scholarships for students of a for-profit college network headed for years by a former governor of Maine.

The Maine Sunday Telegram has published (http://bit.ly/2aj8nC8 ) the results of a three-month investigation into an aspect of long-running controversy surrounding Education Management Corp., formerly led by John McKernan. McKernan was governor from 1987 to 1995 and became CEO of the education firm in 2003.

The newspapers' probe focuses on whether the scholarship fund was too closely tied to the for-profit schools, skirting federal rules.

The Pittsburgh-based college network disputes the charges, saying the foundation operated in accordance with tax law and that its giving did not help it get around the federal rules.

McKernan also has denied any wrongdoing.

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