ST. PAUL -- Promises of an elite-school education and financial aid went unfulfilled and constituted fraud, Attorney General Mike Hatch alleged Wednesday in a lawsuit against a Texas company that counsels people on paying for college.
Hatch accused College Resources Management Inc. of Grand Prairie, Texas, of failing to help find aid or reduce college costs as advertised. The lawsuit states that clients paid an upfront fee of $595 for the guaranteed return of $2,500 or more in aid. Some received nothing.
It further alleges that the company, which also goes by College Financial Aid Services of America, used high-pressure tactics to complete sales.
The lawsuit, filed in Ramsey County District Court, seeks restitution and civil penalties. Mike Tummillo, director of client relations for College Resource Management, said the company first learned of the lawsuit from reporters and has not reviewed it.
After getting a personalized letter three years ago, Carl Wieman, of Owatonna, attended a seminar in Albert Lea with his wife and eldest son. The family, along with eight to 10 others, watched a testimonial-filled video before breaking off to meet with a counselor. They were asked to pay the $595 before they left.
Subsequent correspondence -- or lack thereof -- left Wieman disillusioned and asking for his money back. Wieman said he was bounced around until he'd had enough and sought help from Hatch's office.
"I felt like I've never been suckered into anything in my life," Wieman said. "But that's what this sure turned out to be."
Melanie Howard, of Minneapolis, had a similar experience. She and her daughter, Timera, attended a seminar in Bloomington, where organizers promised Timera that she could go to a school the caliber of Yale University.
Timera Howard now attends Minnesota School of Business and her mother wants her $595 back. She even canceled her credit card so the company couldn't continue charging her.
