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July 26, 2012 / Brandon Brouillette

Southern California Based American Career College Sued Over Fraudulent Student Financial Aid Practices

Last week, a class action lawsuit was filed against American Career College (ACC), alleging that the school committed fraud in its handling of financial aid funds. The complaint alleges that ACC, which has three campus locations in southern California, did not provide students with funds received from the Federal Student Aid Program through the United States Department of Education that were meant for student expenses beyond tuition, such as housing, transportation, and personal funding.  Instead, the lawsuit alleges that ACC allegedly kept the funds – totaling $15,000 per student – and applied it to fabricated services the school did not even provide.  The lawsuit seeks rescission and punitive damages for fraud, conversion, and unfair business practices.

In addition to financial aid fraud, for-profit universities have widely been sued for fraud and deceptive practices, including cases involving accreditation fraud, recruiting and enrollment fraud. In August of 2010, the U.S. Government Accountability Office released an in-depth report of its investigation into the widespread fraud of a fifteen selected for-profit universities. The report is a must-read for those concerned about possible fraudulent practices at for-profit colleges.

If you feel you or someone you know may have been defrauded by a for-profit school, please contact the attorneys of Khorrami, LLP for a free confidential consultation about your legal options

 

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