https://www.educationdive.com/news/amid-growing-scrutiny-dream-center-receiver-says-title-iv-funds-not-missi/548759/
Specifically read the last section of this article, Bypassing Bankruptcy.
....DCEH coordinated with the creditor suing for receivership and improperly convinced the court to appoint a receiver.
There is NO coincidence here, especially considering the amount we’re talking about here. I have been in numerous meeting with “cabinet members” where they were discussing how they would screw vendors. One fine example is how they were going to retaliate against EDMC for not paying what’s due to DCEH as agreed upon during the sale by turning off services still provided to EDMC BEFORE EDMC files for chapter 7. They know all the loopholes and exactly what they’re doing.
Time to lock up Brent Richardson, his family members and long time associates.
Also in addition to the last post it is also can't be a coincidence that in the court documents when the receivership was filed it clearly states the only way the Community College in Ohio would purchase was if the school was in receivership. So they voided stipends and disbursed they money on hand (51 million) with in other Dream Center owned entities and filed for receivership. This is against the law and is fraud. This will all come out sooner or later. Sit back and grab some popcorn and watch the show!!!
There were funds that were issued to the school and stipends were issued to students then voided before they went into receivership and before the level 2 monitoring was placed on financial aid. We were told to inform students it was due to the Government shut down. I can't wait till the Ed Department receives that roster. I also can't wait till they have to show where exactly that $51 million went right before they entered into receivership. If they are found to have filed for receivership fraudulently they will owe every employee that was laid off with no notice at least 60 days of compensation!
1vlm not following the law -- using loop holes in the law to protect interests
The landlord, 3601 Sunflower LLC would have forced bankruptcy to get whatever monies owed by selling any assets.....and all the campuses would have closed immediately. This receivership process at least gives students, staff and faculty time to exit. If they stay at this point with all this going down they are putting on blinders and unable to face reality. I would say the same to the EFP campuses being s---ed dry by more predatory lenders and contracts with Studio Enterprise. It is all a house of cards. Look for an exit ASAP.
They’re just following the law. If you don’t like it work with your state’s legislative body and senators to change the law. Nothing illegal being done just immoral.
This is indeed crooked. How does this make the receiver a "disinterested party"? What a great way to line your pockets. Let's not forget that DCEH received a bunch of money back in the fall from the Department of Education even before the 51 million payment in January! Like someone said in one of the other threads - an accounting forensic specialist would unravel this in a blink of an eye.
It's time to lock up Richardson, his family and longtime associates.
Exactly what has happened----
The landlord, 3601 Sunflower LLC, said in court papers that DCEH coordinated with the creditor suing for receivership and "improperly" convinced the court to appoint a receiver.
"For the purposes of shielding themselves from pending and future lawsuits, preserving their own assets in an attempt to better their own deteriorating economic outlook, and to bypass the Bankruptcy Code, Defendants have dramatically reengineered a breach of contract action by one trade creditor into a nationwide federal receivership action that has paralyzed the leases of landlords ... at campus locations in numerous states across the country," attorneys for Sunflower said.