Appearances: Barbara Burgess, Owner of Cinderella Beauty School
of Bremerton, Washington, for Cinderella Beauty School.
Edmund J. Trepacz, Esq., Office of
the General Counsel, United States
Department of Education, Washington, D.C., for Student Financial Assistance
Before: Judge Ernest C. Canellos
On January 24, 1996, SFAP submitted a letter stating that the parties were no longer pursuing settlement discussions. On January 25, 1996, I issued an Order Governing Further Proceedings reinstating the briefing schedule and requiring the parties to file their respective
submissions within 30 days of the date of my order.See footnote 2
On March 5, 1996, SFAP filed a
Motion For Termination of Proceedings and Entry of Judgment against Respondent on the
ground that Cinderella had failed to comply with my order. On March 6, 1996, in response to
SFAP's motion, I ordered Cinderella to file a submission by March 21, 1996, and in that
submission show cause why I should
not issue a decision and enter judgment
against it for failure to prosecute its
To date, Cinderella has not filed any submissions
in compliance with my orders.
In accordance with my obligation to
regulate the course of this proceeding and the conduct of the parties,
I have the authority and the discretion to
terminate the hearing process and issue a decision against a party if that party does not meet time
limits established pursuant
to my orders. See, 34 C.F.R. § 668.117(c)(3)
. As such, I find that the institution's failure to
file a submission in compliance with my orders warrants the termination of this proceeding.
More important, a
fter a review of the notice to terminate and fine, I
am convinced that the findings contained therein sufficiently state allegations in a manner that
demonstrate that SFAP
has made a prima facie showing that the institution failed to file its biennial audit.
Notably, the institution in its request
for review conceded that it had not filed a biennial audit covering
the award years at issue. Accordingly,
Cinderella's failure to prosecute its
appeal of the notice to terminate and fine compels me to find that SFAP's determination, that
eligibility to participate in programs
authorized under Title IV
should be terminated, is proper.
Under the circumstances, I also
find that the proposed fine is appropriate.
On the basis of the foregoing findings of fact and conclusions of law, it is HEREBY ORDERED that the hearing process initiated pursuant to the institution's request for a hearing is TERMINATED. It is FURTHER ORDERED that Cinderella Beauty School's eligibility to participate in programs authorized under Title IV of the Higher Education Act of 1965, as amended, is terminated and that the institution pay a fine in the amount of $10,500 to the United States Department of Education.
Ernest C. Canellos
Dated: April 9, 1996