If there is anyone who should have been criminally prosecuted during the subprime college crash, it should have been Todd S. Nelson. Certainly, Jack Massimino of Corinthian Colleges and Kevin Modany of ITT Educational Services deserve mention, but Nelson is far and away the most incorrigible.

[Image above (left to right): Jack Massimino (Corinthian Colleges), Kevin Modany (ITT Educational Services, Todd S. Nelson (University of Phoenix, Education Management Corporation, Career Education Corporation]

Todd S. Nelson has made more than $100 million in the process of undermining three of America's largest for-profit college chains and putting hundreds of thousands of working adults in crushing debt peonage. And his current company is targeting service members and veterans, so they can prey upon other working folks.

[Image above: Colorado Tech's Wounded Warrior Scholarships are a public relations coup, enabling Career Education Corporation to prey on countless more service members, veterans, and civilians as they skirt federal loopholes.]

Todd S. Nelson's Dirty Past

As President and CEO of Apollo Group, Mr. Nelson molded the organization into a corrupt company of profits over people. In the early 2000s Nelson was in charge while its University of Phoenix was illegally giving recruiters incentive pay to "get asses in classes." It made Nelson tens of millions of dollars while making stockholders rich. But it was a predatory business model doomed to boom and bust.

In 2006, Todd S. Nelson was pressured out of Apollo Group, but received $41.3 million in compensation, including a $32 million golden parachute. And University of Phoenix is now a shell of what it used to be as it is sold to a vulture equity firm.

From 2007 to 2012, Nelson was a Board member then CEO of Education Management Corporation. Nelson only lasted a few years, but in that time he turned a poorly working system of colleges into an utter failure. Today, EDMC's stock is valued at less than 1 cent per share, and many of its Art Institute and Brown Mackie College campuses resemble ghost towns. Thousands of students are seeking student loan relief after being defrauded by EDMC, but few if any have gotten justice.

In 2015, Nelson again received another opportunity to lead a subprime system of colleges, Career Education Corporation. In less than two years, he has helped downsized the company, making it profitable by targeting unsuspecting veterans for their two remaining brands: Colorado Technical Institute and American Intercontinental University.

In 2016, Todd S. Nelson hired at least one financial crony, former Apollo Group CFO Kenda Gonzales. By 2006, Ms. Gonzales knew that Apollo Group was violating federal laws to about college recruiting, but looked the other way. Both Nelson and Gonzales were involved in the cover up. Information about what really happened, however, is far from clear, including information about her final compensation. As we previously mentioned, Mr. Nelson left with a $32 million golden parachute.

Skirting Federal Loopholes to Prey on Vets and Others

About 96% of all of the money going to CTU and AIU comes from the federal government. The Department of Education allows 90% of a colleges funds to come from the federal government, but because GI Bill money and military tuition is exempted, Career Education can get even more money from the feds. Because of this "90-10 loophole," predatory subprime colleges target veterans. Veterans are "golden tickets" that can allow subprime colleges to recruit even more people for their subprime schools.

[Item below: The Center for Investigative Reporting found that in 2011, Colorado Tech and American Intercontinental University received more than 95% of their funds from the US government, including $69 million from military or VA sources. Recruiting so many service members and vets also allowed them to skirt the 90-10 rule.]

[Item below: By targeting service members and veterans, Career Education can prey upon many more working folk, on the taxpayer's dime.]

[Item below: Todd Nelson has been able to live comfortably and accumulate tens of millions of dollars by defrauding subprime students over the last twenty years.]