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Judge Orders Globe University, Minnesota School of Business to Stop Fraudulent Marketing

September 10, 2016 09:23 AM

A judge has ruled Globe University and the Minnesota School of Business fraudulently marketed and recruited students for its criminal justice program.
    
The Minnesota Office of Higher Education is revoking the schools' authorization to operate. Hennepin County District Judge James Moore ordered the two schools, based in Woodbury, to stop the fraudulent practices and imposed unspecified penalties.

Attorney General Lori Swanson sued the schools in 2014, saying it enrolled students for criminal justice programs even though it lacked accreditation.

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In the fall semester of 2010 more than 9,200 students attended Globe University and the Minnesota School of Business. 

After the investigation was launched, enrollment dropped to fewer than 5,200. 

Read the Complaint Filed Against the Schools
    
The schools, owned by the Myhre family, were ordered to pay the state for legal and other costs. Swanson plans to seek restitution for more than 1,000 students affected. The for-profit schools closed its six campuses in Minnesota and Wisconsin while awaiting the court's decision.

The schools released the following statement Thursday:

"Today, after two years of defending our schools against allegations by the Minnesota Attorney General, the Court issued its decision.  The Court found that Globe University & Minnesota School of Business are currently operating in full compliance with state law. While the Court made some findings related to our now ceased criminal justice program, the Court has ordered the Attorney General’s Office to provide additional information to complete its ruling on the matter.

For nearly 140 years, both Globe University & Minnesota School of Business have trained career-ready graduates with the skills employers want, and our students need to succeed in the workforce. Tens of thousands of our graduates are current, contributing members of our economy who worked hard to earn a degree to better their lives, as well as the lives of their families. Whether we are helping young adults start their first professional career or experienced professionals add a graduate degree, our students and their success has always been, and will always be our top priority. Our ‘We Care’ philosophy and commitment were evident in the testimony of our students, graduates and employees. We are proud of the work we do every day and the role our schools play in strengthening our workforce."

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The Associated Press contributed to this report.

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