Monday, September 22, 2008

Alen Janish & CRI - How To Have Access to Federal Aid and Spend it Too

Most of you are aware of CRI and the way it masqueraded as a viable court reporting school when in sobering reality it was merely a vessel to enrich the clever cronies who had ventured upon a clever scheme to separate vulnerable students from government money. Yes, government money. Strange is it not? If its government money, why does it belong to the students you might inquire? Well it belongs to the students because its the students who end up having to pay it back...and that's forever!

Actually Janisch was a bit more advanced than many of the unscrupulous school operators out there. He managed to swindle not just the students but the Department of Education itself, actually not that difficult. The Dept. of Education has a requirement that a school must meet certain financial standards in order to participate in the financial aid program which is literally the lifeblood of any proprietary school since the students do not pay the tuition for most of these schools, they just have to pay the tuition back. Janisch, in order to meet this requirement, engaged in a version of Three Card Monty, with his finances and those of two of his cohorts or elves if you will. The Dept. of Education requirements are not difficult to anticipate inasmuch as they appear at the end of the year regularly, a bit like Santa Claus. Thus, if a school has enough money at the time the DOE checks their finances then they are good to go. Its as if Santa Clause only checks if you're naughty or nice at the end of the year, ignoring your behavior during the rest of it. Read the summary judgment in the CRI bankruptcy case to get an overview of how this worked.

So Janisch, made sure that he had enough money, jewelry, letters of credit, or whatever negotiable instrument he could locate to satisfy the DOE's predictable journey through his books and then as soon as they turned the corner, simply repatriated what ever collateral his friends had loaned him and went on on about his crooked business.

2 comments:

Bernadette said...

It is heartbreaking to me to read these posts on CRI and Alen Janisch. I was a student at the fraudulent school, and I will be forever in debt for nothing. I finally had to quit school after 5 years of hard, hard work, and no success. I wanted to start a family with my husband, and as I approached my mid-30's, we decided to make the very difficult mistake and walk away from 5 years of dedicated hard work. What can be done for those of us who spent years of our lives for nothing in return, except years and years of student loans to repay, all for nothing but wasted time? Is this fair that we should owe this money back to the government who failed us students because of their failure to properly investigate the numerous complaints about CRI? They would have saved a lot of heartache and thousands and thousands of dollars, which we will never be able to repay. Please help if you can.

Laura said...

I too was a student in Boise of CRI and now I'm trying to go back to school and am faced with the fact that I have no academic history to show as progress for any sort of aid that I had recieved and will in the future and now am faced with trying to prove why I deserve a second chance for aid... this is completely insane... I graduated the program for computer networking and have the paper diploma to show for it but that is all ... I was simply trying to contact the school to get a copy of my transcript and came across all of this after years!!! holy cow what do I do now? some please Help........