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Friday, January 15, 2021

Chasing Carl Barney: My 7-Year Fight for Student Justice and Corporate Accountability (Debbi Potts)

It was July 16, 2012 and I called a meeting with all of my staff.  I was the campus director of CollegeAmerica in Cheyenne Wyoming; one of the many campuses owned by Carl Barney. I called the meeting to inform my staff that I was resigning that day. I wanted to let them know before I emailed a resignation letter to Barney and the CEO and COO and left the building.  

The Dean of Education (Linda) also resigned that day because of her concerns about the lack of ethics of the company. My exit was abrupt, and my resignation letter called Barney out on the fraud that his organization is infested with. I left without notice and without a job to go to.

I told my staff that there comes a time in most people’s lives where you cannot put your foot over the line and that day had come for me. I could not put my name on one more enrollment agreement or participate in the fleecing of students.  

This is my story of the 7-year chase of Carl Barney as he levied a brutal, retaliatory, and relentless plan to silence me.  

Who is Carl Barney?

Carl Barney is a college owner who has turned his private colleges into money making machines for the benefit of his own wealth. His schools were a toxic blend of substandard education, outrageously high tuition, and poor outcomes that left students deep in debt with little to no skills or hope for a better future. The demographic of most of the students that were solicited to enroll lacked the ability to succeed; but that did not matter.

Why did I leave the company and how bad was it?

I was so excited to be part of changing student’s lives through education and taking the role of the top administrator of my own campus. Career schools are high priced and fast paced and unfortunately this one was not about the education of students; it was about sales and enrolling students and pulling down as much federal aid as you could to line Barney’s pockets.  As time went on it was evident that the company had no regard for oversight of rules or regulations that guide these types of schools; nor had they ever been held accountable for their blatant contempt.

An associate degree was upwards of $40k and a bachelor degree was $78k! The students were solicited through a hard sell of manipulative sales techniques and the education and equipment left much to be desired. The students struggled in 4-week courses where the mid-term was at the beginning of week 3.  The faculty who were mostly all adjuncts and were paid less than $10.00 per hour considering the time they put into lecturing, grading papers and coaching students who needed remedial help before they could even comprehend the course materials.

The company was “enrollment driven” with unrealistic goals every month of starting new students. It is called “greed” at the expense of education. Barney’s motto was “We do as we please and ask for forgiveness later.” Accreditation standards were violated throughout the entire system and the students were the ones who suffered.

An example of disregard for regulations

Barney could not operate his company by merely offering a quality education and focusing on students; he always had to have a scheme to entice and enroll students, even if it were a violation of accreditation. He rolled out a free services program where he decided to offer a free certified nursing course to the general public including all of the books, supplies and certification.  Sounds amazingly generous..right? Not so fast. This particular course was part of the medical assisting program and Barney believed that once he gave away “free” services, those students would enroll in the full program. The problem was that each of those students had a target on their back and they were heavily recruited to enroll into the full program. There were literally waiting lists of hundreds of potential enrollees across all of the campuses. Barney never bothered to get this stand-alone course approved through accreditation. Since this course was vocational in nature we also were required to track student completion and placement; that never happened.

Accrediting Commission of Career Schools and Colleges (ACCSC), the accrediting agency issued a “cease and desist” of these programs, leaving hundreds and hundreds of students hanging and angry and disillusioned. Campus directors were left on their own to try to explain this deplorable situation to our unsuspecting victims.

What happened next?

Linda and I immediately contacted the Wyoming and Colorado Attorneys Generals offices in order to divulge the numerous issues of consumer fraud that we had witnessed. 

I received a personal phone call from Barney a day after my exit. He was definitely on a fishing expedition that was intended to figure out what my plans were moving forward. In that conversation I reported to Barney that the company had owed me $7,000.00 for earned but not paid bonuses. He assured me that he would look into my unpaid bonus. Days went by and I decided to file for lost wages through the Wyoming employment labor board.

On July 21, 2012. I received an email from Barney, and it contained a document entitled “Saying Goodbye” which outlined his theory that you can tell a great deal about the character of people by the way they say goodbye. Additionally, he spewed that he hoped that I had filed a written report within the organization with my concerns about the fraud allegations or I was now a contributor to these allegations of fraud!  

I received my bonus in exchange for signing a contract to not disparage the company.

During the months that followed, I was in direct contact with the Attorneys General. In a LinkedIn communication with a former employee of the organization and I asked him to cooperate with the Attorneys General. The employee turned on me and turned the correspondence into Barney. I was sued for an alleged violation of the contract. I represented myself over a two-year period and wrote 75 legal motions to defend myself.  I filed a charge with the US Equal Employment Opportunity Commission (EEOC) who took a case against them on my behalf. 

It was around that time that I met an attorney from Salt Lake City, Utah who had been enjoined by the US Department of Justice in a qui-tam action with several former employees of Barney’s Utah schools because Barney was illegally paying bonuses to admissions recruiters.

Mr. Bandon Mark, this attorney took my case pro-bono and followed me through depositions and court hearings for several years for the lawsuit, while EEOC pursued Barney in federal court.

The entire purpose of this retaliation by Barney was to punish me and intimidate me into silence…it did not work!  The more relentless he became, the more the fraud became public, he would not agree to settle anything, and neither would I.

In May of 2019, a jury of 6 people in a two-day trial awarded Barney $1.00 (instead of the $7,000.00 bonus he was trying to recoup). This was the least amount the jury could give! 

The Colorado Attorney General’s office testified on my behalf as an optic to show the jury what this malicious lawsuit was really about. As icing on the cake, EEOC forced Barney to never enforce the illegal contract they had issued me. The contract violated public policy by requiring me to not contact any governmental agencies with grievances against Barney or his schools. 

What started out as Barney attempting to make an example out of me for speaking the truth about the fraud in his schools actually opened the doors for me to spend 7 years chasing him.

As a result of this chase, I have been deposed numerous times including a 6-hour videotaped deposition all the while his attorneys spewed venom in my face in an attempt to intimidate me. I was scorned publicly in courtrooms for being a whistleblower…none of that mattered.

Barney’s feeble attempt to stop me from bringing truth forward only made the chase more enticing and his fury caused him to make many mistakes including spending hundreds of thousands of dollars in legal fees against me.  His desire to make me pay only served to make public what he had tried to stop me from saying! 

Fruits of my chase:

At the trial where Barney sued me in May 2019; the courtroom was filled with people who got to hear the fraud that Barney had tried to keep silent by suing me! This is in the community where I reside, and community members are now aware of the fraud.  

On August 21, 2020, a Colorado Court issued a fraud finding against Barney in a lawsuit where the Colorado Attorney General was the plaintiff, and I was the whistleblower.  

I have interviewed with US Department of Justice for an upcoming trial against Barney for illegal bonuses.

I have filed numerous complaints with their accreditor. (ACCSC)

I have interviewed with Veterans Education Success as part of their petition to the VA to cease funding to Barney’s schools.

I have participated in a podcast about my whistleblowing story with Heidi Weber who was responsible for the demise of Globe University with her whistleblowing efforts of their fraud. 

I have personally filed a complaint with the Department of Veterans Affairs, Office of Inspector General (VA-OIG). 

I have interviewed with the Consumer Financial Protection Bureau (CFPB) and provided information regarding their investigation of loan fraud regarding Barney’s schools. 

My story has been covered and publicized by David Halperin in Republic Report. Not just once, but twice

I have also been interviewed by David Halperin in Republic Report

 

Indeed …Barney’s schools are in peril

The following are on-going actions of great consequence:

·       The company is on probation with ACCSC and serious question are pending regarding the ability of Barney’s schools to continue to operate as a result of the Colorado Attorney fraud finding.

·       The Consumer Financial Protection Bureau (CFPB) is awaiting a court decision to move forward to compel documents related to loan fraud.

·       The US Department of Education in tandem with some former employees are in the “discovery stage” of litigation regarding illegal bonuses Barney paid to recruiters.

·       Senator Richard Durbin of Illinois has petitioned the United States Department of Education to look at the possibility of suspending federal funds to Barney’s schools.

·       Due to declining enrollment, the lion’s share of Barney’s brick and mortar schools are closed, leaving only an online school platform which has its own issues with ACCSC. 

I will continue the chase wherever and whenever I can be helpful in fighting the fraud of Carl Barney in order to prevent more students from being harmed.   

Sunday, January 23, 2022

Maximus, Student Loan Debt, and the Poverty Industrial Complex

The Higher Education Inquirer is taking a close look at who's invested in Maximus, the enormous social welfare profiteer. Maximus has been servicing student loan defaulters for years and has now taken over Navient's federal student loan business, branding it Aidvantage

Since 1995, Maximus (MMS) has grown from $50 million in annual revenues to more than $4 billion in 2021. 

Maximus (MMS) Share Price 1995-2022
(Source: Seeking Alpha) 

With an army of more than 35,000 workers, Maximus' clients include 28 US agencies: the Internal Revenue Service, Department of Commerce, National Oceanic and Atmospheric Administration, Bureau of the Census, Patent and Trademark Office, Federal Student Aid, Department of Defense and US Army, Department of Veterans Affairs, Homeland Security, Health and Human Services, Medicare and Medicaid, Department of Labor, Office of Personnel Management, Securities and Exchange Commission and many more. 

As a contractor to Federal Student Aid (FSA), Maximus has more than 13 million student loans to service.  Its four contracts with the US Department of Education total almost $1 Billion.  

While CEO Bruce Caswell made more than $6 million in total compensation last year, Maximus' customer service representatives, the people who have to make the calls to the growing number of student loan defaulters, make less money than workers at Walmart. 

Maximus has recently posted federally contracted jobs on Indeed for $13.15 an hour in Texas and South Carolina, even though the federal minimum wage has been raised to $15 an hour. Wages for Maximus workers in other states are reportedly even lower, as little as $10 an hour in Kentucky and other states with regressive economies.   

Maximus' largest institutional investors include BlackRockVanguard Group, and State Street Corp--three financial behemoths.  BlackRock has $10 trillion in Assets Under Management (AUM), Vanguard Group has about $7 Trillion in Assets Under Management, and State Street has almost $4 Trillion in AUM. 

Bank of New York Mellon, Wells Fargo, and Bank of America each own 900,000 shares or more. 

Public retirement funds, including public school teachers retirement funds (see table below), are directly and indirectly invested in the Poverty Industrial Complex and the student loan mess through Maximus and other large corporations. 


Maximus' strategic partners include AWS, Microsoft, Oracle, and Cisco.  

Social justice advocates have to wonder, how can the student loan system be fixed if the US establishment has a vested interested in the mess?  
 
Maximus (MMS) Top Institutional Investors 



List of Public Funds Directly Invested in Maximus

Alaska Department of Revenue 
California PERS
California State Teachers Retirement System
Colorado PERS
Florida Retirement System
Pennsylvania Public School Retirement System
Teachers Retirement System of Kentucky
Louisiana State Employees Retirement System
Ohio PERS 
New Mexico Educational Retirement Board
New York State Retirement System
New York State Teachers Retirement System
Ontario Teachers Retirement System
Oregon PERS
State of Tennessee Treasury
Teachers Retirement System of Texas
State of Wisconsin Investment Board










Monday, January 6, 2025

HEI Resources 2025

[Editor's Note: Please let us know of any additions or corrections.]

Books

  • Alexander, Bryan (2020). Academia Next: The Futures of Higher Education. Johns Hopkins Press.  
  • Alexander, Bryan (2023).  Universities on Fire. Johns Hopkins Press.  
  • Angulo, A. (2016). Diploma Mills: How For-profit Colleges Stiffed Students, Taxpayers, and the American Dream. Johns Hopkins University Press.
  • Apthekar,  Bettina (1966) Big Business and the American University. New Outlook Publishers.  
  • Apthekar, Bettina (1969). Higher education and the student rebellion in the United States, 1960-1969 : a bibliography.
  • Archibald, R. and Feldman, D. (2017). The Road Ahead for America's Colleges & Universities. Oxford University Press.
  • Armstrong, E. and Hamilton, L. (2015). Paying for the Party: How College Maintains Inequality. Harvard University Press.
  • Arum, R. and Roksa, J. (2011). Academically Adrift: Limited Learning on College Campuses. University of Chicago Press. 
  • Baldwin, Davarian (2021). In the Shadow of the Ivory Tower: How Universities Are Plundering Our Cities. Bold Type Books.  
  • Bennett, W. and Wilezol, D. (2013). Is College Worth It?: A Former United States Secretary of Education and a Liberal Arts Graduate Expose the Broken Promise of Higher Education. Thomas Nelson.
  • Berg, I. (1970). "The Great Training Robbery: Education and Jobs." Praeger.
  • Berman, Elizabeth P. (2012). Creating the Market University.  Princeton University Press. 
  • Berry, J. (2005). Reclaiming the Ivory Tower: Organizing Adjuncts to Change Higher Education. Monthly Review Press.
  • Best, J. and Best, E. (2014) The Student Loan Mess: How Good Intentions Created a Trillion-Dollar Problem. Atkinson Family Foundation.
  • Bledstein, Burton J. (1976). The Culture of Professionalism: The Middle Class and the Development of Higher Education in America. Norton.
  • Bogue, E. Grady and Aper, Jeffrey.  (2000). Exploring the Heritage of American Higher Education: The Evolution of Philosophy and Policy. 
  • Bok, D. (2003). Universities in the Marketplace : The Commercialization of Higher Education.  Princeton University Press. 
  • Bousquet, M. (2008). How the University Works: Higher Education and the Low Wage Nation. NYU Press.
  • Brennan, J & Magness, P. (2019). Cracks in the Ivory Tower. Oxford University Press. 
  • Brint, S., & Karabel, J. The Diverted Dream: Community colleges and the promise of educational opportunity in America, 1900–1985. Oxford University Press. (1989).
  • Cabrera, Nolan L. (2024) Whiteness in the Ivory Tower: Why Don't We Notice the White Students Sitting Together in the Quad? Teachers College Press.
  • Cabrera, Nolan L. (2018). White Guys on Campus: Racism, White Immunity, and the Myth of "Post-Racial" Higher Education. Rutgers University Press.
  • Caplan, B. (2018). The Case Against Education: Why the Education System Is a Waste of Time and Money. Princeton University Press.
  • Cappelli, P. (2015). Will College Pay Off?: A Guide to the Most Important Financial Decision You'll Ever Make. Public Affairs.
  • Carney, Cary Michael (1999). Native American Higher Education in the United States. Transaction.
  • Childress, H. (2019). The Adjunct Underclass: How America's Colleges Betrayed Their Faculty, Their Students, and Their Mission University of Chicago Press.
  • Cohen, Arthur M. (1998). The Shaping of American Higher Education: Emergence and Growth of the Contemporary System. San Francisco: Jossey-Bass.
  • Collins, Randall. (1979/2019) The Credential Society. Academic Press. Columbia University Press. 
  • Cottom, T. (2016). Lower Ed: How For-profit Colleges Deepen Inequality in America
  • Domhoff, G. William (2021). Who Rules America? 8th Edition. Routledge.
  • Donoghue, F. (2008). The Last Professors: The Corporate University and the Fate of the Humanities.
  • Dorn, Charles. (2017) For the Common Good: A New History of Higher Education in America Cornell University Press.
  • Eaton, Charlie.  (2022) Bankers in the Ivory Tower: The Troubling Rise of Financiers in US Higher Education. University of Chicago Press.
  • Eisenmann, Linda. (2006) Higher Education for Women in Postwar America, 1945–1965. Johns Hopkins U. Press.
  • Espenshade, T., Walton Radford, A.(2009). No Longer Separate, Not Yet Equal: Race and Class in Elite College Admission and Campus Life. Princeton University Press.
  • Faragher, John Mack and Howe, Florence, ed. (1988). Women and Higher Education in American History. Norton.
  • Farber, Jerry (1972).  The University of Tomorrowland.  Pocket Books. 
  • Freeman, Richard B. (1976). The Overeducated American. Academic Press.
  • Gaston, P. (2014). Higher Education Accreditation. Stylus.
  • Ginsberg, B. (2013). The Fall of the Faculty: The Rise of the All Administrative University and Why It Matters
  • Gleason, Philip. Contending with Modernity: Catholic Higher Education in the Twentieth Century. Oxford U. Press, 1995.
  • Golden, D. (2006). The Price of Admission: How America's Ruling Class Buys its Way into Elite Colleges — and Who Gets Left Outside the Gates.
  • Goldrick-Rab, S. (2016). Paying the Price: College Costs, Financial Aid, and the Betrayal of the American Dream.
  • Graeber, David (2018) Bullshit Jobs: A Theory. Simon and Schuster. 
  • Groeger, Cristina Viviana (2021). The Education Trap: Schools and the Remaking of Inequality in Boston. Harvard Press.
  • Hamilton, Laura T. and Kelly Nielson (2021) Broke: The Racial Consequences of Underfunding Public Universities
  • Hampel, Robert L. (2017). Fast and Curious: A History of Shortcuts in American Education. Rowman & Littlefield.
  • Johnson, B. et al. (2003). Steal This University: The Rise of the Corporate University and the Academic Labor Movement
  • Keats, John (1965) The Sheepskin Psychosis. Lippincott.
  • Kelchen, R. (2018). Higher Education Accountability. Johns Hopkins University Press.
  • Kezar, A., DePaola, T, and Scott, D. The Gig Academy: Mapping Labor in the Neoliberal University. Johns Hopkins Press. 
  • Kinser, K. (2006). From Main Street to Wall Street: The Transformation of For-profit Higher Education
  • Kozol, Jonathan (2006). The Shame of the Nation: The Restoration of Apartheid Schooling in America. Crown. 
  • Kozol, Jonathan (1992). Savage Inequalities: Children in America's Schools. Harper Perennial.
  • Labaree, David F. (2017). A Perfect Mess: The Unlikely Ascendancy of American Higher Education. Chicago: University of Chicago Press.
  • Labaree, David (1997) How to Succeed in School without Really Learning: The Credentials Race in American Education, Yale University Press.
  • Lafer, Gordon (2004). The Job Training Charade. Cornell University Press.  
  • Loehen, James (1995). Lies My Teacher Told Me. The New Press. 
  • Lohse, Andrew (2014).  Confessions of an Ivy League Frat Boy: A Memoir.  Thomas Dunne Books. 
  • Lucas, C.J. American higher education: A history. (1994).
  • Lukianoff, Greg and Jonathan Haidt (2018). The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure. Penguin Press.
  • Maire, Quentin (2021). Credential Market. Springer.
  • Mandery, Evan (2022) . Poison Ivy: How Elite Colleges Divide Us. New Press. 
  • Marti, Eduardo (2016). America's Broken Promise: Bridging the Community College Achievement Gap. Excelsior College Press. 
  • Mettler, Suzanne 'Degrees of Inequality: How the Politics of Higher Education Sabotaged the American Dream. Basic Books. (2014)
  • Newfeld, C. (2011). Unmaking the Public University.
  • Newfeld, C. (2016). The Great Mistake: How We Wrecked Public Universities and How We Can Fix Them.
  • Paulsen, M. and J.C. Smart (2001). The Finance of Higher Education: Theory, Research, Policy & Practice.  Agathon Press. 
  • Rosen, A.S. (2011). Change.edu. Kaplan Publishing. 
  • Reynolds, G. (2012). The Higher Education Bubble. Encounter Books.
  • Roth, G. (2019) The Educated Underclass: Students and the Promise of Social Mobility. Pluto Press
  • Ruben, Julie. The Making of the Modern University: Intellectual Transformation and the Marginalization of Morality. University Of Chicago Press. (1996).
  • Rudolph, F. (1991) The American College and University: A History.
  • Rushdoony, R. (1972). The Messianic Character of American Education. The Craig Press.
  • Selingo, J. (2013). College Unbound: The Future of Higher Education and What It Means for Students.
  • Shelton, Jon (2023). The Education Myth: How Human Capital Trumped Social Democracy. Cornell University Press. 
  • Simpson, Christopher (1999). Universities and Empire: Money and Politics in the Social Sciences During the Cold War. New Press.
  • Sinclair, U. (1923). The Goose-Step: A Study of American Education.
  • Stein, Sharon (2022). Unsettling the University: Confronting the Colonial Foundations of US Higher Education, Johns Hopkins Press. 
  • Stevens, Mitchell L. (2009). Creating a Class: College Admissions and the Education of Elites. Harvard University Press. 
  • Stodghill, R. (2015). Where Everybody Looks Like Me: At the Crossroads of America's Black Colleges and Culture. 
  • Tamanaha, B. (2012). Failing Law Schools. The University of Chicago Press. 
  • Tatum, Beverly (1997). Why Are All the Black Kids Sitting Together in the Cafeteria. Basic Books
  • Taylor, Barret J. and Brendan Cantwell (2019). Unequal Higher Education: Wealth, Status and Student Opportunity. Rutgers University Press.
  • Thelin, John R. (2019) A History of American Higher Education. Johns Hopkins U. Press.
  • Tolley, K. (2018). Professors in the Gig Economy: Unionizing Adjunct Faculty in America. Johns Hopkins University Press.
  • Twitchell, James B. (2005). Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld. Simon and Schuster.
  • Vedder, R. (2004). Going Broke By Degree: Why College Costs Too Much.
  • Veysey Lawrence R. (1965).The emergence of the American university.
  • Washburn, J. (2006). University Inc.: The Corporate Corruption of Higher Education
  • Washington, Harriet A. (2008). Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present. Anchor. 
  • Whitman, David (2021). The Profits of Failure: For-Profit Colleges and the Closing of the Conservative Mind. Cypress House.
  • Wilder, C.D. (2013). Ebony and Ivy: Race, Slavery, and the Troubled History of America's Universities. 
  • Winks, Robin (1996). Cloak and Gown:Scholars in the Secret War, 1939-1961. Yale University Press.
  • Woodson, Carter D. (1933). The Mis-Education of the Negro.  
  • Zaloom, Caitlin (2019).  Indebted: How Families Make College Work at Any Cost. Princeton University Press. 
  • Zemsky, Robert, Susan Shaman, and Susan Campbell Baldridge (2020). The College Stress Test:Tracking Institutional Futures across a Crowded Market. Johns Hopkins University Press. 

 

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Data Sources

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