IN THE MATTER OF SPENCER COLLEGE,
Docket No. 93-27-ST
Student Financial Assistance Proceeding
Appearances: Leslie H. Wiesenfelder, Esq., of Dow, Lohnes &
Albertson, Washington, D.C., for the Respondent
C. Philips, Esq., of the Office of General
Counsel, United States Department of Education,
for the Office of Student Financial Assistance
Before: Judge Allan C. Lewis
This is an action initiated by the United States Department of
Education (ED) to terminate the eligibility of Spencer College to
participate in the student financial assistance programs under
Title IV of the Higher Education Act of 1965, as amended, and to
impose a fine in the amount of $46,000.
In In re Bliss College, Dkt. No. 93-15-ST, U.S. Dep't of Education (Feb. 23, 1994), the Secretary
vacated, as moot, the
Initial Decision of the Administrative Law Judge in a termination
and fine action because the institution had permanently closed
its campuses. In his Initial Decision the Administrative Law
Judge terminated Bliss' participation in the Title IV programs
and did not impose a fine. The Secretary vacated this decision
noting that "a case is moot when a determination is sought on a
matter which, when rendered, cannot have any practical effect on
the existing controversy."
The present case is factually similar to Bliss. ED seeks to terminate and fine Spencer. Spencer
is a subsidiary of Fischer
Educational System, Inc. and both corporations are presently
involved in a bankruptcy proceeding. Spencer has ceased all
operations, is permanently closed, and has no intention to ever
seek eligibility to participate in any Federal student financial
assistance program. Hence, the disposition of this case is
controlled by Bliss which mandates that this matter be dismissed
Accordingly, it is HEREBY ORDERED that the above-captioned
proceeding is dismissed with prejudice.
Allan C. Lewis
Administrative Law Judge
Issued: March 9, 1994
Donald C. Philips, Esq.
Office of the General Counsel
U.S. Department of Education
Room 4083, FOB-6
400 Maryland Avenue, S.W.
Washington, D.C. 20202
Leslie H. Wiesenfelder, Esq.
Dow, Lohnes & Albertson
1255 Twenty Third Street, N.W.
Washington, D.C. 20037-1194