Academy likely to close soon

Published: Friday, Jan. 28 2005 10:33 a.m. MST

The Academy of Nursing in Salt Lake City appears to be headed toward closure with students being owed as much as a combined $2.5 million, according to state estimates.

One big problem is that the academy only had to bond with the state for $187,000, which is money that would be used to pay students back.

"That's not going to go very far," said Francine Giani, director of the Utah Division of Consumer Protection.

"There are several of us who are out several thousands of dollars due to the academy's irresponsible acts," said former academy student Jerry Pierce. "I know that there is a slim chance I will ever see the balance owed to me from the academy."

The academy and the Elite Nurses "boot camp" program, run by one of the two brothers who own the academy, were issued three citations Thursday by the division.

One of the citations is a notice of intent to revoke the academy's permit to operate, because it failed to repay students over the past three months for money they overpaid the academy prior to receiving their tutorial services. State law only allows postsecondary proprietary schools to charge tuition and fees for up to six months in advance of services.

A second citation against the academy reinstates a $90,000 fine that was suspended when the academy and state last October reached a settlement stipulating that reimbursements be made to students.

The academy owners, brothers Mark and Aaron Hansen, were unavailable for comment.

The Hansens have 10 days to respond to the citations, after which it's the state's intent to close the academy and shut down Elite Nurses for good.

Giani said one of the brothers told her Thursday that if they're forced to close, it would be on her head if remaining students were not allowed to use their services.

Giani said that based on the academy's inability to abide by the settlement, she had to issue the citations.

"I could potentially be getting more victims," Giani said. "There's a lot of outstanding balances."

Giani has turned the matter over to the Attorney General's Office for further investigation.

Sen. Dan Eastman, R-Bountiful, is carrying a bill, SB18, that would place tighter controls over businesses like the academy, including more audits, criminal background checks and marketing oversight.

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