2014 Government Regulations & Business Summit
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BOSTON – A former for-profit school in Massachusetts that abruptly closed in January has been sued over allegations that it engaged in a range of deceptive schemes to meet accreditation requirements and maximize profit to which it was not entitled, Attorney General Martha Coakley announced last week.
The lawsuit against American Career Institute, filed in Suffolk Superior Court, alleges the school falsified student signatures, enrollment records, attendance, and grades to receive government-funded student-loan proceeds, and failed to provide students the course material and training for which they incurred tens of thousands of dollars in debt.
The complaint also alleged ACI enrolled students who did not meet minimum education qualifications, and failed to disclose that students with criminal backgrounds may have been ineligible for employment in their field of study. Additionally, Coakley said that ACI failed to refund tuitions for approximately 1,400 students after school closed. •