Career Education was founded in 1994 by John M. Larson who served as the company's president, CEO and was a member of the board of directors until 2006. Under his leadership, Career Education grew to include over 24 U.S. campuses. On July 1, 2003, Career Education Corporation merged with competitor Whitman Education Group, Inc., gaining control over the latter's Sanford-Brown Colleges, Ultrasound Diagnostic Schools (now known as the Sanford-Brown Institute), and Colorado Technical University. They also obtained the former Western School of Health and Business. In the same year, CEC was sued for inflating financial results and issuing misleading statements, thus violating the Securities Exchange Act.