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The Honolulu Advertiser
Posted on: Thursday, July 28, 2005

Court asked to seize assets, order restitution payment

By Ken Kobayashi
Advertiser Courts Writer

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The state yesterday sued the Hawaii College of Pharmacy, alleging that the private institution collected nearly $7 million in tuition from about 240 students even though it was not able to obtain accreditation.

The Department of Commerce and Consumer Affairs filed the Circuit Court lawsuit against Pacific Educational Services Co., a Nevada corporation doing business as Hawaii College of Pharmacy.

It asks the court to appoint a receiver to take over the Kapolei school's assets and for an order barring the institution from collecting tuition. In addition, the suit asks that the school pay restitution to victims harmed by the school's alleged misrepresentation that it was going to become accredited.

"Without accreditation, the students will be unable to take the pharmacy licensing exam, which is required by the state and many other states to work as a pharmacist," said Stephen Levins, executive director of the Office of Consumer Protection, which conducted the investigation that led to the suit.

H.A. Hasan, the school's dean, in a written statement yesterday, said that the school disclosed to all prospective students — in person and in writing — that it was in the process of securing accreditation but had not yet obtained it.

The school will resubmit its application for accreditation on Oct. 1, Hasan said.

The suit also is against Denise A. Criswell, identified as the president, chief executive officer and chairman of the board of directors of Pacific Educational, and David C. Monroe, named in the lawsuit as the secretary and a director of Pacific Educational.

The suit said students paid the annual tuition of $28,000 for a three-year doctorate program, even though the school was not able to obtain the accreditation from an agency recognized by the U.S. secretary of education, in violation of state law.

In addition, the school violated other state laws, including failing to make disclosures and failing to produce records, documents and information.

"The school opened without going through the normal accreditation process, and we are extremely concerned that the students may have been misled," Levins said.

The lawsuit said the school began accepting applications for enrollment in 2004.

Meanwhile, Robert and Fabiola Killian, a former San Francisco Bay-area couple who moved here when Robert Killian enrolled in the school last year, yesterday filed a federal court lawsuit seeking unspecified damages. The suit also is against the Hawaii College of Pharmacy and Monroe and Criswell.

The suit said the school promoted itself to be the very first college of pharmacy in Hawai'i and did not disclose that it was not accredited.

Michael O'Connor, the Killians' lawyer, said Robert Killian enrolled last year after the pair sold their house and moved here.