How a For-Profit College Preyed on the Homeless

[Spitfire of ATJ]

4. This is nothing new...

Ex-School Owner Indicted in Loan Fraud
(July 21, 1989)

<snip>

Virtually all of Adelphi's students were poor people, frequently young minorities, seeking to acquire skills that would qualify them for such jobs as computer operator and diesel mechanic. Typical tuition in New York, said Abrams, was $7,000 a year. Virtually all Adelphi students funded their educations through a combination of federal grants and loans.

When students dropped out of Adelphi, Terranova allegedly failed to refund student loans to lender banks as required by state and federal laws. Refunding the money, Abrams said, would have considerably reduced the student's loan burden.

<snip>

The pending criminal case against Terranova could create problems for New York mayoral candidate Rudolph W. Guiliani, who until recently was the U.S. attorney in Manhattan. While in private law practice in the late 1970s and early 1980s, Guiliani represented Terranova in a criminal case in which he pleaded guilty to stealing federal job training money in New Jersey.

Then, just a few months later, in July, 1980, Guiliani wrote a letter of recommendation for Terranova, who was applying to New York authorities for a license to operate a vocational school. The letter failed to disclose that Terranova was on federal probation at the time.

http://articles.latimes.com/print/1989-07-21/news/mn-4249_1_student-loan-money