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Financial Aid Funding Cut Off at Two Colleges Following Investigations

President Obama Announces John King Jr. As Education Secretary During News ConferencePresident Obama Announces John King Jr. As Education Secretary During News Conference
John B. King JR, acting Secretary of Education, delivers remarks after being nominated by U.S. President Barack Obama.Pool Getty Images

The Department of Education rejected financial aid program applications from Computer Systems Institute and Marinello Schools of Beauty following federal investigations into the two for-profit college chains.

The department found in an investigation that CSI submitted false data to in order to preserve its accreditation and disclosed false information to current and prospective students, misleading them about job prospects.

According to the rejection letter the department sent to CSI, the school claimed that 42 graduates from its Health Care Career and Business Career programs were employed by Home Health Consultants. CSI provided an address in Chicago, claiming it was the students’ place of work and their supervisor was Zoharel Quinn.

When investigators went to the address, it turned out to be the home of “Dr. Quinn,” who only spoke to the department agents through his closed screen door. When asked about HHC’s finances, he said the company didn’t receive funding from CSI or the Illinois Department of Aging. He said he “just did it” and it was “his thing.” When the graduates were interviewed, most of them had never even heard of HHC. Two said they’d been hired by Dr. Quinn to hand out flyers, though only one of them had been compensated at the low rate of $1.25.

MarketWatch reports that the department also rejected Marinello’s application for federal funding after finding that, among other allegations, some of its campuses had provided students with fake high school diplomas so they could be eligible for financial aid. A spokesperson told the news site, “While Marinello believes it has done nothing wrong and will defend itself vigorously, without the federal funds our students deserve our operations are at risk.”

CSI couldn’t immediately be reached for comment.