UNITED STATES DEPARTMENT OF EDUCATION
WASHINGTON, D.C. 20202
In the Matter of Docket No. 96-73-SP
FEDERICO BEAUTY COLLEGES, Student Financial Assistance Proceeding
Paul G. Freeborne, Esq., Office of the General Counsel, U.S. Department of
Education, Washington, D.C. for the Student Financial Assistance Programs.
Before: Frank K. Krueger, Jr., Administrative Judge
On July 11, 1996, I issued an Order Governing Proceeding in which I established a
schedule for the submission of briefs and exhibits. Under that schedule, Respondent was to
submit its brief and exhibits on or before August 12, 1996. Respondent ignored that deadline.
As a result, on August 19, 1996, SFAP moved to terminate the proceeding and enter a default
judgement in its favor. In response, I issued an order requiring that Respondent show cause by
August 30, 1996, as to why SFAP's motion should not be granted. In response to a motion for
additional time to respond to the show cause order, Respondent was given until September 30,
1996, in which to respond to the show cause order and to submit its initial brief and exhibits. On
September 29, 1996, Respondent submitted a letter in which it failed to address the substance of
SFAP's determination; the letter stated that, while it did not agree with the SFAP findings, it
does not have the financial resources to defend itself.
I have examined the final program review determination and conclude that the findings
contained therein sufficiently state allegations that require Respondent to carry its burden of
proof in this proceeding. See 34 C.F.R. § 668.116(d) (1995) and In re Sinclair Community
College, 75 Ed. Law Rep. 1296, 1299 (1991). Respondent's failure to submit any evidence to
rebut the SFAP findings leaves me with no choice but to find that Respondent has failed to carry
its burden of proof in establishing that the expenditures questioned by SFAP were proper and
that it complied with all program requirements.
October 2, 1996
Frank K. Krueger, Jr.
Mr. Samuel B, Federico, President
Federico Beauty Colleges
5660 N. Blackstone
Fresno, CA 93710
Paul G. Freeborne, Esq.
Office of the General Counsel
U.S. Department of Education
600 Independence Ave., S.W.
Washington, D.C. 20202-2110