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Weren’t they vastly misselling their success rate? They said sign this agreement, we offer 9X% rate of success! Then it turned out to not be the case. TFA: > M

Weren’t they vastly misselling their success rate? They said sign this agreement, we offer 9X% rate of success! Then it turned out to not be the case. TFA: > Most students weren't hired. What little money the school made came from quietly reselling student debt to hedge funds. Legally sound, probably? Morally unsound, definitely.

lopkeny12ko 2y ago
Isn't every VC-funded startup overly optimistic? I've seen pitch decks before where founders promise 10x growth over the next 2 years to an impossible projected revenue. It is obviously not going to happen, and indeed did not. Should those founders be criminally charged as well?
- afavour 2y ago
  IMO there’s a meaningful difference between pitching to VC investors and selling a product to individual customers.
  - mcguire 2y ago
    There is a meaningful legal difference between lying to VC investors and lying to people taking out loans from you.
drewda 2y ago
The Consumer Financial Protection Bureau said that specific practice was not legally sound. See the subsections titled "Misrepresented their financial interests by selling loans to investors" and "Engaged in illegal contract practices" at https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-coding-boot-camp-bloomtech-and-ceo-austen-allred-for-deceiving-students-and-hiding-loan-costs/ https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes...