AhbabaOooMaoMao t1_j8p7m90 wrote on February 15, 2023 at 11:23 PM

Reply to comment by Environmental_Log344 in Stone Academy Closing?? by Environmental_Log344

With regulatory compliance* there's usually a notice and an opportunity to cure. Only after refusing or failing to cure does the agency move to enforcement, and that's usually only fines.

Environmental_Log344 OP t1_j8p8cu9 wrote on February 15, 2023 at 11:28 PM

Stone Academy just ruined a few lives. If they knew they were about to tank, which they would know from the agency noticing them, they just got whatever they could get before the agency acted. Then they jumped ship. Of course, we were not there to really judge what was happening but it sounds like they could have come clean to the students before a fresh round of semester loans came up.

AhbabaOooMaoMao t1_j8pggl5 wrote on February 16, 2023 at 12:27 AM

For profit colleges. Of course they aren't going to tell the students they're about a tank. They will take every last check, and then stiff their workers too; their directors and officers are likely legally obligated to do so, lest the investors be the ones defrauded. Betsy DeVos probably owns the equity fund that probably owns this school. Fuck a refund, we need to start eating these people. Richest country ever to exist, college or trade school should be free for anyone that wants to attend and gets accepted to a program.

Environmental_Log344 OP t1_j8pkysp wrote on February 16, 2023 at 1:01 AM

You are right, except there are public high schools that offer trades. And I think community colleges are about to be free?

Agreed. Telling everyone their dilemma would just rush the process. They used that evaluation period to wipe up as much as they could. Poor students, went there for a high price and won't even get that worthless certificate of completion. Or the non-existent job placement assistance. Boy, have times changed.

Can you elaborate on this: "workers too; their directors and officers are likely legally obligated to do so, lest the investors be the ones defrauded". It isn't clear about the obligated party.

AhbabaOooMaoMao t1_j8pm2gh wrote on February 16, 2023 at 1:09 AM

The directors and officers of a corporation owe a fiduciary duty to shareholders, not to customers. If the directors or officers do something unreasonable and tank the corporation's value, the shareholders or ownership can sue the directors or officers for the breach of duty. That could include revealing information that would benefit customers to the company's detriment.

They might also screw their workers by closing the doors without notice and then not issuing final paychecks or honoring other compensation obligations.