Federal judge dangles jail time in front of Betsy DeVos

Corinthian Colleges, Inc. was yet another for-profit university that screwed over hundreds of thousands of people with pyramid schemes that promised a higher education at the end of some labyrinthine maze. The company filed for bankruptcy in 2015, and the U.S. government ruled that any students with outstanding debts should have those debts cancelled.

That was before Betsy DeVos became the U.S. Secretary of Education.

DeVos, the wife of pyramid scheme pioneer Dick DeVos and brother of famed mercenary Blackwater founder Erik Prince, was unsurprisingly unforgiving of the students who were conned by Corinthian. She stonewalled more than 100,000 loan forgiveness applications and continued pursuing debt payments from screwed-over students who couldn't pay them back. In 2018, U.S. Magistrate Judge Sallie Kim finally told her to knock it off (legally).

Spoiler alert: she didn't listen.

So they landed back in court earlier this week on Monday, October 7, 2019. Judge Kim was (understandably) quite irate at having her court order violated sixteen thousand times by Devos's department. While the issue is still not completely resolved, the judge did threaten the possibility of tossing someone behind bars. From Bloomberg:

"I’m not sure if this is contempt or sanctions," U.S. Magistrate Judge Sallie Kim told lawyers for the Education Department at a hearing Monday in San Francisco. "I'm not sending anyone to jail yet but it’s good to know I have that ability."

[…]

"At best it is gross negligence, at worst it’s an intentional flouting of my order."

I'm not holding my breath for DeVos to actually spend any time in jail or prison, of course. Read the rest

Government seizes fraudulent military recruitment sites

Individuals willing to lay down their lives—or at least risk them for the promise of steady employment—shouldn't have to put up with phony websites designed to snag and sell their personal information. It's an opinion that's apparently shared by the FTC.

From Gizmodo:

The FTC filed a complaint in federal court today charging that two Alabama-based companies, Sun Key Publishing and Fanmail.com, made roughly $11 million selling data to private schools. The companies would contact the potential recruits and encourage them to enroll at specific for-profit schools under the false impression that the U.S. military endorsed the organizations. If the mark sounded interested, Sun Key would sell that recruit’s information for anywhere between $15 and $40. Tens of thousands of people visited the websites every month.

The defendants were charged with violating the FTC Act as well as the FTC’s Telemarketing Sales Rule and reached a settlement with the government. But they won’t have to give back that $11 million because of their “inability to pay.”

The evil geniuses behind the scam used websites with the web addresses Army.com and Air-Force.com (apparently Army.com has been privately owned since 1995,) to lure in hopeful candidates looking to work a job that never makes you think about what you should wear to work. According to Gizmodo, for the time being, the FTC is staying quiet on which schools were benefiting from the ill-gotten personal information. Chances are, as the FTC develops their case against the digital imposters and their clients, we'll learn more about the who-did-whats. Read the rest