Globe University, Minnesota School of Business Ordered to Pay Restitution

January 05, 2017 05:00 PM

Two Minnesota universities in the process of shutting down are being ordered to pay restitution to some of their students.

RELATED: Globe, MSB in Process of Shutting Down Campuses

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According to the order, a court found Globe University and Minnesota School of Business violated the Consumer Fraud and Deceptive Trade Practices Act.

READ: Judge’s Restitution Order

Now, the schools are being ordered to make restitution available to any student enrolled in their criminal justice programs from January 2009 forward.

RELATED: MSB, Globe University Students No Longer Have Access to Federal Student Aid

The court stated that fraudulent practices caused injury to students.

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

The schools argued in court that wasn’t the case.

RELATED: Concordia University Preps for Students as MSB, Globe University Shut Down Campuses

Minnesota Attorney General Lori Swanson sued the company in 2014 claiming it exploited students’ higher education prospects while saddling them with debt.

According to the court order, the schools must hand over contact information of each student to the state attorney general.

The attorney general will then notify the students. The students will have 45 days to make a claim.

Globe University issued the following statement:

The Court’s final order was limited to one program—criminal justice—which has not been offered for more than two years and which represented no more than 4 percent of the Schools’ overall student population at any given time. We are disappointed that the Court’s findings, based on the testimony of only 16 students, have resulted in such significant harm to the education and degrees of tens of thousands of students and alumni.

The schools will continue to work with regulators, complete our teach-outs, and encourage other institutions to help students.

We continue to weigh all of our options, including an appeal.

Credits

Nate Leding

Copyright 2019 - KSTP-TV, LLC A Hubbard Broadcasting Company

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