Report: #548436

Complaint Review:

  • Submitted: Fri, January 01, 2010
  • Updated: Sun, January 03, 2010
  • Reported By: Anon — Anywhere Nationwide United States of America
    11350 McCormick Rd
    Hunt Valley, Maryland
    United States of America The whole Truth from a former Employee Hunt Valley, Maryland

*Consumer Comment: My School did the same thing

*UPDATE EX-employee responds: Ex-Employee too

*Consumer Comment: Lucky to get an email???

Show customers why they should trust your business over your competitors...

Alright, there's alot of stories flying around, so I want to attempt to set the record straight.  Feel free to reply, but I'm not getting into any further discussions.  This will be the only time I ever post on this website.

I was an employee of (CTE) until the true day of closure: Dec 28, 2009.  I was a Technical Trainer/Instructor.  I am witholding the location.


Yes, the company had issues when the tuition was $28k...they weren't getting enrollments purely because Sallie Mae (SM) wasn't approving loans for that amount.  For about a month, the tuition kept dropping and dropping until it hit an all-time low of $10k SM loan and $3.5k in-house loan.  Students started enrolling like hotcakes, but it wan't enough to sustain the company.  Tuition went back up to $15k, enrollments dropped again (thanks SM).  As SM slowly started approving more $15k loans, CTE tried to increase to $18k...there were hardly any enrollments.  The company couldn't survive, so it closed.


Quite honestly, the company didn't exist as of Dec 28,2010.  Yes, on Dec 28, everyone was told that the entire company was closed, and it was.  Everyone from Admissions, Career Services, IT, accounting...EVERYONE was let go, even the Training Department.

BUT, the Training Department was not about to easily give up and let students rot.  The COO (name witheld) who is also the National Director of Training tried desperately for two days to get the bank to open up an account with money in it that was solely to be used to pay the trainers enough money to finish any classes in session.  The bank's final decision was to DENY any money to the remaming staff (ONLY the COO, Regional Training Managers, and Trainers...22 people).  Since ALL ACCOUNTS were seized and there is NO COMPANY to refund students, there's no way students can get a refund from ANYONE.

The COO then made the FINAL decision to give up on Jan 30th.


Yeah, the notification email wasn't very detailed, but what do you expect when someone is writing it after learning the bank doesn't care about the students that are hung out to dry?  Quite frankly, the students should be glad they got any email at all instead of arriving on their next day of class with closed and locked doors.


Well, what can students do?  Like the email says, call your state's DoE.  They might assist you in transfering you to another school to finish the course.  CTE did that a few years back whan a school closed down.

Unfortunately, like in the last section, there's no company to sue or get a refund from.  It's been dissolved and there's no employees anymore.  The bank owns all the assets.


I will say that there were very good people in the company.  The entire Training Department was truly dedicated to student success.  I spent countless hours away from my family to help my students pass tests and succeed.  The Training Department was strictly instructed to never give out answers to the exam.   I never did and the instructors I met personally never did, either.  That doesn't mean there were bad eggs in the dozen, though.

Carreer Services worked extremely hard to get students jobs, even if they were very low on the pay scale.  The trick the students needed to figure out is to work in the bad job for 3-6 months, then go for a better one.  Keep doing that for a few years, and you'll be surprised at where you could be.

Admissions was a good department too, but there were some bad areas.  Now, we all know they're just a sales team so they would tell potential students anything to get them in.  You need to separate the truth from the half-truths.  My admissions department was exemplary.  They tried to get strong candidates to enroll and make sure that the quality of student was high.  Yes, I've heard about alot of other centers not caring who they enroll.  It just depends on your location and the scruples of the admissions people.

I will say that the main issue was with the top echelon of the company.  The downfall of the company was mainly because of a select few people.   One became greedy, another had no clue how to run a nation-wide company (previously managing a Staples doesn't make you a great Company President), and another was just a mouthpiece.  Also, there was a large amount of bloat in the company.  There was one person that handled this, and one person that handled that...if I were in charge, the company would've been streamlined a long time ago.


I choose not to talk about salaries, but I will say that yes, there were bonuses depending on the situation, and sometimes, those bonuses were insanely high (~$25k for one month of enrollments during a special bonus promotion).


In closing, honestly, the company went south when it stopped focusing on training and cared only about sales.  That happened long before the recent problems, though.  I blame recent problems on mismanagement.  And that's exactly why alot of companies close.

To all students left out in the cold: We're sorry.  We wish we could finish training you at least, but the bank said no.  We had no choice but to give up and close.  Training tried...we failed.  At least we didn't just give up like the Company President.

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#1 Consumer Comment

My School did the same thing

AUTHOR: Jocko - (U.S.A.)

The school I taught at almost 10 years ago did the exact same thing, one day we showed up and none of the instructors were told the school was closing either was Connecticut D.O.E. The recourse is to go straight to the State the company did business, also contact the Attorney Generals office and the company that holds your student loan. Your still responsible to pay that loan back but the state might be able to help you find those funds that originally was supposed to be used to train you in the wonderful world of IT. 

Good Luck to all in recovering those funds, and I would go after everyone who had any position within the company to include the COO as he could have prevented this from going this way. Or at the very least could have notified the state so they could have located the funds before they disappeared.

In my situation the owners of our School took all the money and attempted to run to a neighboring State (Ma) and set up shop again and start the entire process all over. Except in this situation I found out and reported the former owners to the DOE. I do not know the final outcome but the former owners did spent time in prison and lost everything to include funds they tried to hide. The only funds they could not get no longer resided in US Banks but in banks located in the Middle East.

Good luck to all the former students.

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#2 UPDATE EX-employee responds

Ex-Employee too

AUTHOR: formeremployee - (USA)

I am also an ex-employee.  I agree that training was always the "inconvenient truth" of The company was only interested in profit and the actual training was an bothersome afterthought. 

My biggest problem with the way things evolved was why were we continuing to push and sell classes up to and including 12/23/09? We were told on 12/28 that the banks denied credit on 12/24 but they spared telling us before the holiday (supposedly to allow us the opportunity to enjoy our holiday before we learned the truth about our future). Were David Rau, Chuck Lang and Curtis Hickman so clueless that they did not have an inkling that this could happen? Does anyone even care that we ripped off innocent people we took their money and they will never be given the opportunity to attend even one class?

If we took peoples money knowing that we could not give them what they were buying was that not fraud?  Please, someone find an attorney to represent these people and have the attorney post his or her contact information here.   There may be no justice for students enrolled in existing classes but there can be justice for people who were sold something that the company could never possibly give them.

Ex-employees are a wealth of information. Angry ex-employees (people who worked for no pay for the entire month of December, donated their vacation time so that the Florida mansion could have an even nicer light fixture and lost their health insurance because COBRA is not offered by bankrupt companies) have even more details.

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#3 Consumer Comment

Lucky to get an email???

AUTHOR: student - (United States of America)

It sounds like you were a good instructor but come on man. How are we, the current students, lucky to have been notified as opposed to showing up to locked doors. A generic email, which is what we received, doesn't cost anything. I think a phone call would have been at least exceptable. We paid a lot of money and the very least we deserved was a phone call.

Maybe someone would have had to spend a couple of days doing this for free and don't we deserve that for 15000. After all the school was calling with in hours of taking the on line skills challange; in some cases in minutes.

I agree that a lot of the gripes about low paying jobs etc. comes from unrealistic students. Of course you start at the bottom and work up. I am confident that I will still be sucessful as a IT pro. I am just furious that the school ran and hid.

Maybe Dave Rau could have posted an apology...something. I guess that should not be expected from a scumbag. I will pray that he loses everything and his family suffers like some will as a result of this closing. I also hope he spends some time in jail; although that is not probable it would be wonderful.

Why doesn't he sell some of his nice things and give back to the ones he has stolen form? My class received an email on Dec. 1 telling us that our school would be closing but it would not close until our graduation. Then a week later a new class started. Is that not criminal. Sounds like someone took the money with full knowledge.

In closing. My anger is directed to those who ran the school into the ground. My direct experience with the staff at my center was a good one. Yes the material was challanging as it was expected to be but the staff did a good job to raise my chance of sucess. I only wish I had been given the opportunity to finish.

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