Complaint Review: AIU - American InterContinental - Career Education
- AIU - American InterContinental - Career Education
Hoffman Estates, Illinois
- Category: Colleges and Universities
AIU - American InterContinental Career Education ripoff Do you want to attend a school operated by crooks? Hoffman Estates Illinois
*Consumer Comment: Amadou Tall, A/K/A, Amadouba T. Tall, A/K/A Tall Amadouba
*REBUTTAL Individual responds: Dear Mr. "Anonymous" from Monrovia
*UPDATE EX-employee responds: Amadou Tall- Scam Artist in Education
*UPDATE EX-employee responds: But you're wrong...
*UPDATE EX-employee responds: Almost... but not quite right!
*UPDATE EX-employee responds: That's not the half of it...
*UPDATE Employee: Not Surprised
Article from 3 May 2006
"Prior to forming CEC in 1994, Larson, from 1980 to 1993, served in senior executive positions with two large, but now defunct, national school companies - National Education Centers (Education Centers), a subsidiary of National Education Corporation (NEC) and Phillips Colleges, Inc. (Phillips). Ogata and Dowdell were fellow executives with Larson at Education Centers - Dowdell serving as President of Education Centers from 1984 to 1988 and Ogata serving as Chief Financial Officer, Treasurer and Vice President of NEC from 1987 to 1998 and as President of Education Centers from 1996 to 1998. During the tenure of Larson and Dowdell, in the late 1980s, Education Centers' schools began to develop excessive federal student loan default rates, which by the early 1990s impaired the access of many of the schools to federal student aid programs. During Ogata's tenure at NEC in the 1990s, NEC shut down its Education Centers business, closing 25 schools and selling off the rest by 1996. The closure and sale of schools resulted in a $70 million loss at NEC.
At Phillips, Larson held the position of Senior Vice President of College Operations from 1989 to 1993, which included oversight of all of Phillips' admissions and sales activities. By the late 1980s, Phillips had become the largest national operator of postsecondary institutions, owning close to 100 schools at its zenith. Phillips developed extensive regulatory and operational problems in the early 1990s and faced multi-million dollar liability assessments by the U.S. Department of Education (DOE) for improper administration of federal student aid programs, including unpaid refunds, lack of proper documentation, excessive cash drawdowns, high loan default rates and use of commissioned sales representatives in a "Onestop Shopping" sales program from 1987 to 1990 to improperly promote federal student loans. The Onestop Shopping sales program, which Phillips used in 1989 and 1990 after Larson took over admissions and sales at Phillips, eventually led to a DOE audit determination in early 1993 that the program violated federal regulations and required repayment of $155 million to federal lenders. This $155 million liability was later upheld in 1994 and 1995 by an administrative law judge, the Secretary of Education and the courts. Also during Larson's watch, in 1992 the DOE determined that Phillips was in such poor financial condition that it could not continue to participate in the federal student aid programs unless it posted a $5 million letter of credit. Larson left Phillips in 1993, but the regulatory problems which began under Larson's tenure ultimately led Phillips to close 43 schools and to sell off the rest."
Hoffman Estates, Illinois
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