SOURCE: EVCI Career Colleges Holding Corp.

November 22, 2005 10:38 ET

EVCI Career Colleges Announces Results of Independent Investigation

10-Q Has Not Yet Been Filed Because Auditors Have Not Finished Their Review

YONKERS, NY -- (MARKET WIRE) -- November 22, 2005 -- EVCI Career Colleges Holding Corp. (NASDAQ: EVCI). On October 19, 2005, EVCI announced that it had received a draft report of a compliance review of Interboro Institute undertaken by the New York State Education Department. The report included assertions of irregularities in Interboro's admissions practices.

The allegations related primarily to the changing of test scores by a tester at Interboro's Yonkers site and a tester at Interboro's Flushing extension center and to a financial aid representative at Yonkers telling a student applicant to misrepresent his income so he would be eligible for financial aid.

Ritzert & Leyton, P.C., a firm with substantial experience in conducting internal investigations of proprietary schools, was retained by the audit committee of EVCI's board of directors to lead an extensive internal investigation. A report of the results of the investigation was submitted yesterday to the New York State Education Department. Interboro's response to the remainder of the draft report was submitted to the New York State Education Department by the deadline of November 7, 2005.

In summary, the investigation determined that:

--  There is no basis to conclude that executive management was aware of
    the violations alleged or that EVCI management directed, encouraged or
    ignored any of the alleged conduct.
    
--  Management and staff maintain a commitment to compliance with all
    applicable regulations governing the proprietary school industry at both
    the state and federal levels.
    
--  There was no evidence to suggest that any of the allegations were
    caused by Interboro's admissions department.
    
--  Activities detailed in the allegations appear to be limited to
    isolated events by a few rogue employees and there was no basis to conclude
    the activities were pervasive.
    
Interboro is now outsourcing its admissions testing.

EVCI will file its 10-Q for the quarter and nine months ended September 30, 2005 when its independent auditors complete their review. EVCI cannot predict when the auditors' review will be completed.

Contact Information

  • Contact:
    EVCI Career Colleges Holding Corp.
    Dr. John J. McGrath
    CEO and President
    Joseph D. Alperin
    General Counsel and VP for Corporate Affairs
    914-623-0700