Department of Education Investigation

Not long before they closed, the Department of Education ("DOE") audited CRI and found they were overcharging students on the loan program.  Students, who were unaware of the problems for the most part, were abruptly told by CRI’s financial aid people that “rules had changed at the Dept of Ed and they were no longer eligible for as much money as they used to be" so they would have to start paying out of their own pockets – another spin put on the truth by CRI.  The rules had not changed – CRI had previously been overcharging. This caused even more students to leave, though CRI tried to prod them into staying by finding them private loans. One student was even told she might consider refinancing her home to get money that way!

Many students simultaneously complained about financial aid improprieties to the DOE here in Seattle, DeNise Hill specifically, as well as complaining to NELA, Sallie Mae, Accrediting Council for Independent Colleges and Schools ("ACICS") (CRI's accrediting agency), etc.  Other than some interest by the DOE, the others were not the least bit interested.   

Though DeNise Hill admitted CRI had been nothing but trouble and was on the “radar screen” for years over their financial dealings, she initially insisted they had done nothing wrong and she could do nothing about what they were doing.  In a later December 1, 2006, letter, she retreats from that statement and says:

“The investigation you reference in your letter was the September 30, 2003 program review.  The length of this review has been a result of the complexity of the finding, the number of students and academic years and the total amount and type of financial aid involved.  We are aware that is has been a long process and to date, we are still actively seeking a satisfactory solution.”  

She states she visited the school many times to see Mr. Janisch about his penchant for bouncing living expense checks to students, claiming the department took that seriously.  She heard all of the stories Mr. Janisch had given to students as he had told her the same ones: A disgruntled student had stolen the corporate checkbook and written checks, causing them to bounce; the check printer had made an error and they had to close the account, etc.  They pretty much recycled the same stories. 

Other information was reported to DeNise Hill regarding CRI in San Diego and their practice of billing for 4500 hours instead of the 3000 they were entitled to charge for.  She claimed we were not accurate about that, but it has been confirmed by San Diego students.  They too were “repackaged” shortly before they closed and given the same story about the rules changing.  As of June 2007, two former students have filed Freedom of Information Act Requests for Education Department program reviews of CRI.

DeNise Hill was informed of the recruiters signing contracts with aliases, specifically Tom Girgus and Mike Girgus - signing as Tom Fielding and Mike Stiles.  She was also informed of other fraudulent things that went on at CRI.  Later students stopped direct communication with DeNise Hill once Senator Maria Cantwell’s office became involved and began communicating with the Department of Education directly.

Court Reporting Institute or "CRI" as it was known, was a classic example of how for-profit education can fail miserably!  Despite making millions over 18 years through allegedly deceptive practices , CRI closed its doors and declared bankruptcy in 2006 leaving many students saddled with debt and sans education.  This website is to inform the victims of this fraud about the efforts of some of the former students to hold CRI, Alen Janisch, the school's director and Mike Girgus, its director of education, accountable for their actions.  These students are pursuing CRI in the bankruptcy court and a civil suit.  They have also petitioned numerous state and federal legislators to urge federal and/or state criminal prosecution on the state and federal levels, along with changes in laws and regulations covering vocational schools in Washington State.   This website is designed to keep you up-to-date with these efforts and will be updated so that all the links work soon. 

In July of 2007, Linda Henderson of the Department of Education responded to Washington Senators Maria Cantwell and Patty Murray who had sought explanations regarding CRI pursuant to requests from CRI students that an investigation by the Department of Education, Office of the Inspector General be commenced.  This is Ms. Henderson's response Ms. Cantwell and Ms. Murray.