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Owners of defunct Stone Academy face court order forcing compliance with state investigation

Attorney General Tong had sent civil investigation demands to the two owners of the now-shuttered Stone Academy. Tong said his office was ignored.

CONNECTICUT, USA — Stone Academy's owners are now facing a court order to comply with the state's investigation into the school's abrupt closure, Attorney General William Tong said. 

The for-profit nursing school abruptly closed its campuses in East Hartford, Waterbury, and West Haven on Feb.15 following serious concerns regarding National Council Licensure Examination rates, faculty qualifications, and clinical training. 

Tong's investigation began a week later, on Feb. 23, into potential violations of the Connecticut Unfair Trade Practices Act.

The investigation began with Tong sending civil investigative demands to the academy, seeking out detailed information and records regarding the education provided to the students and the tuition collected. Tong also wanted to investigate the school's marketing practices, faculty qualifications, revenues, accreditation materials, and complaints received by the school. 

The demands to Stone Academy also sought information on how and when they decided to shutter their doors and how the decision was relayed back to the students. 

Tong wanted to know how the school intended to reimburse students for tuition and costs, how it would help students in furthering their education, and how it intended to tell students of their rights and options following the school closure. 

According to Tong's office, Stone Academy responded to the demands, and Tong's office is reviewing the records. They've also conducted numerous interviews with students and others connected with relevant information. 

However, Tong had to send a letter to Stone Academy's lawyers, highlighting specific areas where the school's responses appeared incomplete or missing key information. 

The owners of Stone Academy have been reported as more elusive, according to details laid out by Tong's office. 

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On March 15, Tong served owners Joseph Bierbaum and Richard Scheinberg with civil investigative demands as well, seeking detailed information regarding their financial and legal interests, duties, and responsibilities at the school. Tong also wanted information on Bierbaum and Scheinberg's involvement, duties, and financial involvement in other for-profit education entities in the state. 

Tong's investigative demand also wanted to know where the school's records are stored and information on payroll, staffing, enrollment, and attendance records. 

Bierbaum and Scheinberg are also being asked to answer questions regarding efforts they made to ensure the school's compliance with state law, including their awareness/involvement in efforts to allow non-clinical assignments to count towards clinical instruction hours, efforts to ensure adequate student-faculty ratios, and efforts to ensure the accuracy of student transcripts among other things. 

According to Tong, the demands for information in the investigation have gone unanswered by Bierbaum and Scheinberg past the March 29 deadline. 

On April 6, Tong filed a court order to force compliance with the investigation. 

“Stone took in millions of dollars in tuition from students who spent countless hours away from their families and jobs to become nurses and advance their careers. Stone utterly failed them. What has happened to these students is a tragedy and I am beyond outraged on their behalf. We are bringing everything we’ve got to this investigation, and we are going to get to the bottom of this. If our office finds any wrongdoing, I will not hesitate to hold those responsible to the fullest extent of the law,” said Tong about the investigation.

The Office of Higher Education, the Department of Public Health, and the U.S. Department of Education are all working to assist students in obtaining transcripts, tuition refunds, loan discharges, and adjustments to veteran benefits, as well as providing support for students attempting to continue their education at other schools.

According to Tong, Stone Academy had initially agreed to pay for and cooperate with an audit of its student records to enable students to continue with their education and begin their careers. Stone has since rescinded that offer. The state has agreed to pay for that audit, which is now underway.

If you are a Stone Academy student needing assistance or a Stone Academy employee with information relevant to this investigation, please provide information via the Office of the Attorney General’s online portal.

Students may also wish to contact the Office of Higher Education for assistance and guidance regarding their educational options via 860-947-1816 or ohe.pcs@ct.gov.

Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.  

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