Here is an article on the problems facing US universities regarding the cottage industry of training/agency schools that help students study abroad. It specifically names New Oriental as being part of the problem.
I believe this is going to be the beginning of the next stage of the arms race as US universities clamp down on fraudulent applications and Chinese business' ever more creative ways to circumvent the process; it's a lose-lose situation for all involved.
As someone who firmly believes in education, it is a sad situation as cram schools are really nothing more than a drug dealer, promising you a good time without caring about the crash that will inevitably come. I really, really hope this is the beginning of a new era where Chinese students and their parents begin to realize that studying abroad is more than just the application process, you actually have to be prepared for the rigors of academic study. The irony of it all is, parents and students cite the quality of education of western universities for wanting to study abroad while using all possible ways to dilute that quality by seeking entrance when they are obviously not up to standard.
On a side-note. I had dealings with New Oriental teaching one of their prep programs for a western university. The curriculum and standards outlined by the university is very clear cut, the students must submit their own work, the work must be adequate; if the students completes all courses with passing grades, they are accepted into that university. The program managers had other ideas. They marketed it as pay us the money and we will make sure you pass.
When the students began submitting unacceptable work, I was told I must give them the answers so thy can pass. After I refused, I was told I must give unlimited chances to resubmit the work after I have graded them (in essence, keep changing the wrong answers until they get it right). After I refused again, I started receiving work that I know they were not capable of. Needless to say, New Oriental gave me bad reviews, trumped up some charges and I'm no longer teaching that program. And good riddance because the program will not last 2 years I will still have my integrity.