IN THE MATTER OF ACADEMIA de BELLEZA BORINQUEN,
Docket No. 89-31-S
Student Financial Assistance Proceeding
Appearances: None by the Respondent
Stephen M. Kraut, Esq. of Washington, D.C., Office of the General Counsel, United States Department of Education for the Office of Student Financial Assistance
Before: Judge Allan C. Lewis
This is an appeal by the Academia de Belleza Borinquen concerning the
Notice of Intent to Terminate and Fine, dated July 20, 1989, issued by the U.S
Department of Education. After a lengthy due to an agreed upon suspension by
the parties, the tribunal issued an Order Governing Proceedings on January 8,
1991. The Order Governing Proceedings required ED and then subsequently the
respondent to exchange a list of proposed witnesses, exhibits, and a proposed
stipulation of fact. These statements were also to be submitted to the
On February 11, 1991, ED submitted its statement to the tribunal and to the
respondent. Under the Order Governing Proceedings, the respondent's statement
was due on March 4, 1991. As of this date, the respondent has not complied
with the Order Governing Proceedings. In light of this noncompliance, ED
moved for an entry of judgment on March 25, 1991.
Under 34 C.F.R. § 668.89(c) (1990), the administrative law judge is authorized
take whatever measures are appropriate to expedite the proceeding.
These measures may include, but are not limited to, the following-
. . . .
(2) Setting time limits for hearings and submission of written documents; and
(3) Terminating the hearing and issuing a decision against a party if that party does not meet those time limits.
In light of the respondent's failure to comply with the Order Governing
Proceedings and 34 C.F.R. § 668.89(c), it is hereby--
ORDERED that the appeal of the Notice to Terminate and Fine by the respondent
is dismissed and that decision is entered against the respondent which
terminates its eligibility to participate in the student financial assistance
programs under Title IV of the Higher Education Act of 1965, as amended; and
it is further
ORDERED that the respondent immediately and in the manner provided by law pay
fines in the amount of $200,000 to the U.S. Department of Education.
Allan C. Lewis
Administrative Law Judge
Issued: March 27, 1991
Director, Audit and Program Review
Office of Student Financial Assistance
Room 3923, ROB-3
7th and D Street, S.W.
Washington, D.C. 20202-5254
Academia de Belleza Borinquen
1652 Ponce de Leon
Parada 24 1/2
Santurce, Puerto Rico 00912
Julio E. Silva Ayala, Esq.
Bufete, Silva & Santiago
P.O. Box 3034
Mayaquez, Puerto Rico 00709
Jesus E. Jimenez, Trustee
P.O. Box 6263
Santurce, Puerto Rico 00913
On March 27, 1991, a copy of the initial decision was also sent to--
Stephen M. Kraut, Esq.
Office of the General Counsel
U.S. Department of Education
Room 4150, FOB-6
400 Maryland Avenue, S.W.
Washington, D.C. 20202