WASHINGTON, D.C. 20202
In the Matter of Docket No. 98-65-SA
AMERICAN NANNY COLLEGE, Student Financial
Appearances: Dr. Beverly Benjamin, of Montclair, California, for American Nanny College.
Howard D. Sorensen, Esq., Office of the General Counsel, United States
Department of Education, Washington, D.C., for Student Financial Assistance
Before: Judge Ernest C. Canellos
It is well established that in Subpart H -- audit and program review -- proceedings, the
institution has the burden of proof. 34 C.F.R. § 668.116(d). Consequently, to sustain its burden
the institution must establish, by a preponderance of the evidence, that Title IV funds were
lawfully disbursed. See In re National Training, Inc., Dkt. No. 93-98-SA, U.S. Dep't of Educ.
(October 18, 1995). It is abundantly clear that under the circumstances of this case, ANC has not
met its burden. In this regard, I note that along with its request for an administrative hearing, the
institution submitted a letter stating that it could show that prior owners of ANC may owe some
of the liability sought by SFAP in this proceeding; that notwithstanding, the institution neither
came forward to support its argument with the submission of a brief or evidence, nor did it show
how its argument was relevant or probative of the allegations contained in the FAD. Indeed, I
find that the institution's position, without more clarification and support, has no apparent
probative relevance to the findings in the FAD.
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 the institution if it, through neglect or otherwise, fails to prosecute its
appeal of the FPRD. See, 34 C.F.R. § 668.117(c)(3). As such, I find that the institution's failure
to file a brief warrants the termination of this proceeding. More importantly, I am convinced that
the findings contained in the FAD sufficiently state allegations in a manner that demonstrate the
existence of a prima facie showing that the institution failed to comply with Title IV program
requirements as determined therein.
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 American Nanny College pay to the United States Department of Education the sum of $14, 440.00 and pay $11, 198.00 to the current holders of Title IV loans consistent with the determinations contained in the FAD and in the manner as required by law.
Ernest C. Canellos
Dated: September 24, 1998