Hawaii Litigation Update: American Univ of Hawaii

On November 8, the court entered three orders of importance in the case. First, the court lifted the ban prohibiting AUH from accepting payments and issuing degrees. Second, the court ordered AUH to implement a restitution program by writing to its students and graduates and offering them a full refund (conditioned only on the return of any diploma awarded). Third, the court assessed a civil penalty in the amount of $500,000 against AUH. These orders are now posted on the state’s website at <http://www.state.hi.us/dcca/ocp/case_info.html>.

These orders, in conjunction with the order issued on April 26, 2004 substantially resolve most of the issues in the case. Because they do not resolve all issues, however, they are not final judgment. There are two issues remaining decided: (1) whether AUH will be permitted to continue operating in the event the restitution claims (if any) and/or the civil penalties are not paid and (2) the amount, if any, of civil penalties to be assessed against AUH’s owner and president, Hassan “Henry” Safavi. Trial on those issues was scheduled to take place on November 15, but was postponed to December 20. A hearing has also been scheduled for December 15 to address those issues.

We have also recently learned that Dr. Safavi established a new corporation called American University of Hawaii, Inc. in the state of Mississippi on June 11, 2004.

 

You're not as glamorous as Gloria Arroyo (see related thread on Philippines), but you're still damn good at this. Bravo. Again.

 

On January 31, 2004 the Second Circuit Court of the State of Hawaii entered a Permanent Injunction and Final Judgment Against Defendant American University Hawaii, Inc. The judgment may be viewed online at <http://www.hawaii.gov/dcca/areas/ocp/summaries_judgments/un_schools/AUH/>. This document resolves all of the State of Hawaii's claims against American University Hawaii, Inc. (a Hawaii corp).

Under the terms of the judgment AUH is required to pay the State of Hawaii $500,000.00 in civil penalties within ten days of entry of the judgment. In the event it fails to do so, it is enjoined from operating as a university (i.e. enrolling students, accepting payments, issuing degrees). AUH did not pay the civil penalties and hence the injunction is in effect.

The court has also set a trial date of April 5, 2005 to resolve the state's claims against the proprietor of AUH, Hassan H. Safavi.