11.01.19

Durbin, Blumenthal, Brown Call On Devos To Immediately Cooperate With Investigation Into Department's Role In Dream Center Accreditation Misrepresentation

WASHINGTON – U.S. Senators Dick Durbin (D-IL), Richard Blumenthal (D-CT), and Sherrod Brown (D-OH) today sent a letter to U.S. Department of Education Secretary Betsy DeVos calling for her immediate and full cooperation with House Education and Labor Committee Chairman Bobby Scott’s (D-VA-03) investigation into the Department’s role in Dream Center Education Holding’s (DCEH) accreditation misrepresentation at its Illinois Institute of Art and Art Institute of Colorado campuses. DeVos has failed to substantively respond to July 17 letter from Scott concerning the Department’s role in providing accreditation misrepresentation at DCEH.

“You have thus far impeded Congress from gathering the full picture of this matter and left the public record pointing to Department misconduct.  At this point, transparency is your only option,” the Senators wrote.

Scott’s letter revealed that the Department may have made at least $10.7 million in improper federal taxpayer-funded payments to DCEH at a time when it was legally prohibited from participating in Title IV; and retroactively granted non-profit status to the Illinois Institute of Art and Art Institute of Colorado campuses to cover up these improper payments.

In February, Durbin and U.S. Representative Rosa DeLauro (D-CT-03) called on the U.S. Department of Education’s Office of Inspector General (OIG) to immediately investigate reports that millions in federal Title IV funds have not been paid to students attending Dream Center Education Holdings (DCEH) schools operated by a court-appointed receiver and that additional federal funds may have disappeared as a result of questionable sales, consummated with the Department’s assistance, of other DCEH campuses. 

Last year, Durbin wrote to the Higher Learning Commission, which accredits DCEH’s Illinois Institute of Art and Art Institute of Colorado, following reports that the company misrepresented its accreditation status to students. 

Full text of today’s letter is available here and below:

 

November 1, 2019

Dear Secretary DeVos:

We are deeply troubled by the Department of Education’s (Department) failure to cooperate with an important Congressional investigation being conducted by House Education and Labor Committee Chairman Bobby Scott into the Department’s role in Dream Center Education Holding’s (DCEH) accreditation misrepresentation at its Illinois Institute of Art and Art Institute of Colorado campuses.

On July 17, Chairman Scott first publicly wrote to you requesting cooperation with his investigation.   In that letter, he revealed new details about the Department’s role in DCEH’s accreditation misrepresentation—which call into question representations the Department, including you and Principal Deputy Undersecretary Diane Auer Jones, made to members of Congress in writing and under oath.

Now, in a letter sent to you just this week, Chairman Scott reveals that you have “failed to substantively respond” to his July 17 letter and that you are not cooperating with the investigation.  What’s more, his letter revealed shocking new evidence that the Department may have:

  • Made at least $10.7 million in improper federal taxpayer-funded payments to DCEH at a time when it was legally prohibited from participating in Title IV; and
  • Retroactively granted non-profit status to the Illinois Institute of Art and Art Institute of Colorado campuses to cover up these improper payments.

If true, this represents a serious breach of the public trust and failure to uphold the laws and regulations governing the disbursement of federal student aid funds.  It means the Department is directly responsible for additional students being harmed and taxpayer dollars being wasted at Illinois Institute of Art and Colorado Art Institute.

You have thus far impeded Congress from gathering the full picture of this matter and left the public record pointing to Department misconduct.  At this point, transparency is your only option.  We call on you to immediately and fully cooperate with Chairman Scott’s July 17 and October XX requests and personally direct the cooperation of Department officials and staff.

Thank you.

Sincerely,

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