Pittsburgh Post-Gazette

Art Institutes’ owner faces suit

Students say nonprofit defrauded them after schools lost accreditat­ion

- By Daniel Moore Daniel Moore: dmoore@post-gazette.com, 412-263-2743 and Twitter @PGdanielmo­ore.

Four Art Institute students in Chicago have filed a lawsuit against Dream Center Education Holdings, claiming the nonprofit committed fraud by failing to notify students it had lost institutio­nal accreditat­ion at four Art Institute campuses in January.

Dream Center — which agreed to purchase most of the Art Institute college chain from Pittsburgh-based Education Management Corp. in March 2017 — was notified on Jan. 20 that accreditat­ion was temporaril­y removed from four Art Institute campuses while the sale was under review.

Those schools were The Art Institute of Illinois in Chicago and Schaumberg, Ill.; the Art Institute of Michigan in Novi, Mich.; and Art Institute of Colorado in Denver.

A Chicago-based regional accreditat­ion agency, the Higher Learning Commission, instructed Dream Center to publicly post the new accreditat­ion status and notify students of the removal.

The commission also required school management to accommodat­e students “in light of this action, which may include, if necessary, assisting students with financial accommodat­ions or transfer arrangemen­ts, if requested.”

But Dream Center continued to state in its course catalog that the schools “remain accredited” and left many students, faculty and staff at those schools in the dark. In July, Dream Center announced those four schools would be among 18 Art Institute campuses to close by the end of the year.

According to the lawsuit, filed on Thursday in Circuit Court of Cook County, the students learned of the accreditat­ion loss in June when they started the summer quarter.

After that, the suit contends, school management continued to make false and misleading statements, including that the schools were likely to win back accreditat­ion.

At a meeting in November, the Higher Learning Commission upheld its earlier decision, declining to reinstate accreditat­ion for those who had already graduated in 2018.

An official for Dream Center did not respond to a request for comment.

Accreditat­ion — higher education’s way of enforcing quality control measures — is coveted by schools as a stamp of approval. Committees at the six major accreditat­ion agencies occasional­ly drop in on college campuses to review finances, academics, policies and other measures to ensure schools are meeting minimum standards.

Accreditat­ion is typically a requiremen­t to receive federal student loan money. Some employers expect a job candidate to have an accredited degree, while others — particular­ly those who have graduated from the affected Art Institutes in 2018 — are more lenient.

The lawsuit comes as the Middle States Commission on Higher Education, a Philadelph­ia-based regional accreditat­ion agency, considers whether to remove accreditat­ion from the Art Institute of Pittsburgh. Last month, Middle States gave the Strip District campus until March 2019 to comply with its rules.

 ?? Daniel Moore/Post-Gazette ?? The Art Institute of Michigan in Novi, Mich., announced in July it would shutter by the end of the year. The school, which opened in 2008, has taught hundreds of students from suburban Detroit in the fields of creative studies, including animation, culinary arts, fashion design and photograph­y.
Daniel Moore/Post-Gazette The Art Institute of Michigan in Novi, Mich., announced in July it would shutter by the end of the year. The school, which opened in 2008, has taught hundreds of students from suburban Detroit in the fields of creative studies, including animation, culinary arts, fashion design and photograph­y.

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