Capella University Student Loan Kickback
Scam
The news story regarding the Capella University student loan kickback
scam has grown so big that we've now create an entire section on
our web site just to feature it. We salute the news media for finally
reporting on the blatant corruption that we strongly believe pervades
all of Capella University. This corruption is finally getting the
attention it deserves, especially since it displays how Capella
University has engaged in ripping off so many of their so-called
"learners" (Capella-speak for "student"). Enjoy!
Have you been harmed by
Capella University's Financial Aid Scandal?
 As
a direct result of the recent financial aid scandal that has rocked
Capella University (no, Capella doesn't "rock"), we've
created a special
forum just for visitors to share their own horror stories. Who
knows? If enough people share their own experiences with the alleged
unethical actions of Capella's Financial Aid Director, Timothy Lehmann,
in which he apparently received kickbacks in the neighborhood of
$21,000, perhaps we'll have a class-action lawsuit against the goons
and thugs that manage Capella University!
Capella University Continues to Give
Student Loan Xpress Preferential Treatment!
As unbelievable as it may sound, Capella University, which is under
investigation for accepting kickbacks from Student Loan Xpress and
for giving them preferential placement on Capella's "Recommended
List of Lenders" continues
to place the loan company at the very TOP of their lists (April
20, 2007) - a full business week after the New
York times broke the story (on April 14, 2007) that:
"A top executive of a student loan company asked
Capella University to re-order its list of recommended lenders,
according to documents being reviewed by Senate officials who
are examining the relationship between the loan company and the
academic institution."
Screen captures of Capella's "Recommended Lender Lists"
have been created and will be sent to elected officials and members
news media to prove this fact. As this site is the first to break
this story, we are now providing copies of those screen captures
which demonstrate that Capella University continues their blatant
disregard for ethics and fails to act properly even when they are
being investigated for their involvement in the student loan scam.
As noted, we've now placed screen captures from Capella's web site
that demonstrate that they continue to give preferential treatment
to Student Loan Xpress. Are the idiots who manage Capella morons
or what?!
Click
here to view screen captures.
Congressman George Miller Chastises United States Department of Education and Schedules Hearing
Like his counterpart in the United States Senate, Senator Edward M. Kennedy, Congressman George Miller, Chairman of the House Committee on Education and Labor, is also investigating the kickback scam involving Capella University. In fact, Miller's committee will be holding a hearing on the matter on April 25, 2007. We urge all members of the committee to take strong and swift action to halt the unethical practices of the money mongers and liars at Capella.
Read more here.
Senator Edward M. Kennedy Instigates Senate Investigation into Corruption at Capella!
Senator Edward M. Kennedy has rightfully launched a Senate Investigation into the corrupt practices of Capella University. As part of that investigation, the Senator has written to Capella's lying President, Michael Offerman with a demand to cough up documents pertaining to the Capella student loan Kickback scam. Of course, based upon our own first hand experience with the refusal of Offerman, Capella's Chief Shyster, Greg Thom, "Senior Counsel" Priscilla McNulty, and their "Dream Team" of Sir Chrisy the Sissy (H. Christian L'Orange) and "Capella Stella" Fey Epling from the law firm of Drinker Biddle (the same law firm that serves as one of Capella's congressional lobbyists) ongoing refusal t turn over other records as required by both Federal Law and court-ordered demand for documents, we certainly don't believe that Capella will treat the Senator's demands any differently.
We have now placed copies of the Senator's letters to Michael Offerman and Capella's very own "Mr. Kickbacks" Timothy Lehmann, on this site. Enjoy!
Capella Puts Stock Offering on Hold!
According to a Pioneer
Press (MN) report, dated April 17, 2007, "Capella puts
stock offering on hold; plans response next week to student loan
probe." The article states,"
"A week after putting its financial aid director
on paid leave, Minneapolis-based Capella University said today
it has put a planned stock offering on hold as the school deals
with inquiries into its relationships with student loan companies.
"The for-profit, online university is caught up
in a wide-ranging national investigation by the New York attorney
general's office examining possible conflicts of interest between
colleges and student loan firms."
Capella's CEO, Steve (Mr. Tonka U.) Shank states:
"We take the issue raised by the New York Attorney
General seriously and remain committed to the highest standards
of quality and integrity."
Quality and integrity?! It's nothing less than a sin to use those
terms at the same time as the name of "school", Capella
University. Surely Mr. Tonka is smoking something! What about the
charlatans he employees such as Diane
Stottlemyer who has purchased and uses fake degrees from diploma
mills? What about Greg Thom, Capella's
chief shyster who is unable to tell the truth?! What about all of
the other jerks and liars from Capella that make up Mr. Tonka's
for-profit scam?
Frankly, in light of this incident, the ongoing audit of Capella
University's books by the United States Department of Education,
Office of the Inspector for stealing approximately half-a-million
dollars from taxpayers, the grossly unethical conduct of his employees,
and the ever increasing number of lawsuits against Tonka University
(oops, we forgot, Shank prefers to call it "Capella University"),
we find Mr Tonka U's statements to not only to be absurd, but downright
laughable. Perhaps that's was Mr. Tonka, himself, spoke with the
press instead of shyster Greg Thom or
others. We would like to suggest that Mr. Tonka U needs to go back
and play with his toys!
Capella Education Company Stock Plunges!
Capella's Dream Team and the goons
at Capella love to blame this site for their bogus financial woes.
The only problem is, since this and related sites went up, Capella's
enrollment has doubled (yes, you read that correctly, their enrollment
DOUBLED) and their stock has soared! Since the stock was first offered
in November 2006, it has climbed from an initial offering at $20
to more than $35! Apparently, prospective students (oops, make that
"learners") and investors have been so impressed with
what they found on our site that they couldn't wait to plunk their
hard-earned cash down on Capella University! In fact, so much money
has been gushing into Capella's coffers that even Capella's Feeble
President, Michael Offerman, recently
told the Greentree Gazette (March 2007) that:
"It's been rewarding to see the growth we've had. Our learners
and faculty take pride in being associated with Capella University.
I'm in a happy place right now."
[emphasis ours]
Gosh, we're so pleased that Mikey was "in a happy place."
We can't help but wonder if he's still smiling now that the news
media has caught wind of some of the unethical things that are occurring
under his watch. In fact, since the media picked up the story about
the kickback scandal where Capella's Director of Financial Aid has
been accused of accepting kickbacks (according
to the Associated Press, he accepted $21,000), Capella's Stock
(symbol CPLA) has finally taken a nosedive! We can't wait to see
how low it may go! Take a look at what's happened to it in the past
week:
Mikey, are you still in that happy place?!
Greg Thom, Capella's Chief Shyster & Liar
Files Report with SEC Concerning Kickback Scandal
 There
are perhaps no other individuals at Capella University who are as
dishonest and unethical as Greg Thom, their
"chief counsel" and liar extraordinaire. Greg Thom
has long been reported on this site for his almost innate inability
to tell the truth - he
lies to courts under the penalty of perjury, he
lies to students, he
lies to Federal law enforcement agencies, he lies to the media,
heck, he'll lie to just about anyone who he thinks he can deceive.
(Note, we haven't posted all of Greg Thom's lies on this site as
he is still the subject of an investigation into his personal role
in a complaint against Capella University with a Federal law enforcement
agency.) He is, quite literally, what we believe is the very epitome
of the definition of a shyster.
What is so disturbing now is that he has just submitted
a document on behalf of Capella University to the Securities and
Exchange Commission regarding the notorious kickback scandal
involving Capella's Director of Financial Aid. Has Greg Thom lied
in that document too? Based upon his track record, it wouldn't surprise
us and we strongly urge the news media to fully investigate and
challenge every single word Thom writes in order to verify it's
veracity (or lack thereof). Let's take a look at a few of the statements
Greg Thom, liar, has made to the SEC:
- Statement: "We are commencing our own
internal review of this matter, including our relationships with
both private loan and FFEL program lenders."
- Our Response: Now that's comforting. Tell
us, Greg Thom, are you going to lie and hide the facts as
you've done with so many others (i.e., Federal law enforcement
agencies [yes, that's plural], news media, students, etc.,
etc.). Perhaps you can assemble another one of your sleazy
Kangaroo Courts, composed of incompetent morons like those
who are currently involved in one of the lawsuits pending
against Capella University. Of course, that's the same lawsuit
in which Greg Thom served as the prime thug who appears to
have masterminded Capella's actions.
Not surprisingly, Greg Thom tries to weasel out of his responsibility
to tell the truth in information he provided to the SEC with much
discussion given to "forward-looking
statements." It appears as if this is one way in which
those who file such documents with the SEC can make statements for
which they can later back out from. How convenient.
Reuters and the Chronicle of Higher Education are now reporting
on the Capella Kickback Scandal!
Reuters
News Service and the Chronicle of Higher Education are the latest
to report on the unfolding Capella University kickback scandal involving
allegations that Capella's Director of Financial Aid, Tim Lehmann,
received kickbacks from Student Loan Xpress. Perhaps the most disturbing
new development concerns the statement that:
"Capella said it is cooperating with Cuomo's office
and follows the highest standards of integrity. Capella, an online
university based in Minneapolis, says it currently has about 18,000
student enrolled."
To use the word "integrity" and the name, "Capella
University" is nothing less than an outrage in light of all
the unethical jerks and liars that we've
long reported on. These include several attorneys who have lied
under penalty of perjury and a rather long list of Capella's employees
and agents who seem to be incapable of anything resembling ethical
behavior. We urge all visitors to explore this site for details.
Financial Aid Kickback Scam Continues to Grow!
In addition to the Associated Press and CBS reporting on the latest
Capella University scandal in which the New York Attorney General's
Office is alleging kickbacks received by Financial Aid Director,
Tim Lehman, the story continues to grow! According to the latest
information from the Star Tribune of Minneapolis, MN, reports:
"Capella University President Michael Offerman said
today that the university had discovered the potential conflict
last Friday while doing its own investigation. He said his "understanding"
was that Lehmann made $12,400 as a consultant for Student Loan Xpress
between late 2005 and early 2006. The concern about such an arrangement
is that a financial aid officer who is also working for a lending
agency might improperly steer student loan business toward that
lending agency without keeping the best interests of the students
in mind.
Lehman was placed on paid administrative leave Tuesday,
Offerman said."
Gosh, why doesn't Offerman also put other Capella thugs on leave
too? For starters, we would recommend:
- Diane Stottlemyer, the Capella
Instructor who purchased and uses fake graduate "degrees"
from a known diploma mill, Lacrosse University. Capella has known
about this charlatan for years and yet still permits her to "teach."
- Greg Thom, Capella's Chief Shyster
who has repeatedly demonstrated his gross lack of ethics by lying
to law enforcement agencies and others
- Kurt Linberg, Capella's incompetent
Dean of their School of Business and Technology who is not only
incapable of spelling
simple words but, along with Greg Thom,
and Jack Krichen (one of Capella's
"Faculty Directors") are some of the key figures in
one of the lawsuits currently pending against the University.
- Some of the other Jerks and Liars
from Capella who listed on this site.
Let's not forget to mention all of the lawsuits
and other complaints currently pending against Capella University.
What a scam!
Associated Press & CBS News are reporting
on:
Allegations of Kickbacks to
Capella University Official!
Gosh, what a surprise?! Both the Associated
Press and CBS
News have released a story (April 9, 2007) outlining allegations
of kickback from Student Loan Xpress to Capella University Financial
Aid Director Timothy Lehman is under investigation for receiving
kickbacks!
In an article entitled, "Cuomo
says loan company paid fees to college loan officers,"
the Associated Press notes that:
"Investigators say a student loan company
under investigation by New York Attorney General Andrew Cuomo
paid consulting fees to the director of financial aid at Minneapolis-based
Capella University.
"Cuomo's office said Timothy Lehmann was paid more
than 13-thousand dollars in consulting fees by Student Loan Xpress."
The CBS article, "Another
Suspension In Student Loan Probe: Financial Aid Administrator Paid
Thousands By Student Loan Company; Investigation Widens,"
states:
"In a letter to Capella's president [Michael
Offerman], Cuomo's office asserts that Capella's financial
aid director, Timothy Lehman, received $13,000 in consulting fees
from Student Loan Xpress while the company was one of the school's
15 recommended lenders. "
While this story is just breaking wide open, we have also learned
that the illustrious Tim Lehmann also happens to be a graduate of
Capella University - somehow, that doesn't surprise us! Perhaps
he received private lessons from Kurt
Linberg, Dean and liar for Capella's School of Business and
Technology!
Somehow, it doesn't surprise us that "Capella did not immediately
return a call for comment."
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