IN THE MATTER OF ALLIED SCHOOLS Docket No. 94-125-ST
OF PUERTO RICO, Student Financial
Respondent. Assistance Proceeding
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
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
Judge Richard F. O'Hair
Issued: November 7, 1994
S E R V I C E
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.
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