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IN THE MATTER OF ALLIED SCHOOLS    Docket No. 94-125-ST
OF PUERTO RICO,                    Student Financial
            Respondent.            Assistance Proceeding
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    ORDER DENYING MOTION TO STAY PROCEEDING

    On October 27, 1994, Respondent submitted a motion requesting the tribunal to stay the proceedings pending the outcome of a grand jury investigation, or in the alternative, for six months. Respondent alleged that the issues in the instant case were substantially similar to those involved in the criminal proceeding and that continuing the present case would result in hardship and inequity to the school. SFAP submitted a brief response, directing the tribunal's attention to the decision in In the Matter of Maurice Charles Academy of Hair Styling, Dkt. No. 91-18-ST, U.S. Dep't of Educ. (May 17, 1993). Based upon the reasoning set forth at pages 19-23 of that decision, I find that the present administrative proceedings before the Department of Education should not be stayed. I find particularly relevant the fact that, as in Maurice Charles, the school has not yet been indicted. Additionally, as was stated in Maurice Charles, termination proceedings require prompt resolution in order to avoid the potential risk to the Department of loss of funds paid to an institution pending the results of the termination proceeding.

    Accordingly, it is ORDERED that Respondent's motion to stay proceeding is hereby DENIED.

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                             Judge Richard F. O'Hair

Issued: November 7, 1994
    Washington, D.C.



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                     S E R V I C E
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A copy of the attached document was sent to the following:

Michael D. Golden, Esq.
William Sherman, Esq.
Verner, Liipfert, Bernhard, McPherson and Hand
901 15th St., N.W.
Suite 700
Washington, D.C. 20005-2301

Russell B. Wolff, Esq.
Office of the General Counsel
U.S. Department of Education
600 Independence Avenue, S.W.
Washington, D.C. 20202-2110