Indictments of St. Regis' alleged operators

Discussion in 'Accreditation Discussions (RA, DETC, state approva' started by galanga, Oct 6, 2005.

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  1. galanga

    galanga New Member

    The investigation of alleged violations of various sections of the United States Code by Dixie Ellen Randock, Steven Karl Randock Sr., Heidi Kae Lorhan, Amy Leann Hensley, Richard John Novak, Blake Alan Carlson, Kenneth Pearson, and Roberta Lynn Markishtum has resulted in criminal indictments of these eight individuals.

    The Randocks, Lorhan, Hensley, Novak, Carlson, Pearson, and Markishtum were notified of the indictments earlier today.

    There is a press release with more information issued by the office of the United States Attorney for the Eastern District of Washington, posted next message.

    One of the investigators mentioned that Dixie Randock's Jaguar convertible was seized during today's actions; he described the experience of driving it off the Randocks' property. Apparently the mechanism used to raise/lower the roof partially obstructs the driver's vision.

    More information as available--
     
    Last edited by a moderator: Oct 6, 2005
  2. Bill Huffman

    Bill Huffman Well-Known Member

    I'm so surprised that the other shoe has dropped (NOT!)

    YIPEE!!!!
     
  3. galanga

    galanga New Member

    USA press release

    ...is here:

    ===========================

    U. S. Department of Justice
    United States Attorney
    Eastern District of Washington
    300 United States Courthouse 509/353-2767
    Post Office Box 1494 FAX (509) 353-2766
    Spokane, Washington 99210-1494

    PRESS RELEASE

    FOR IMMEDIATE RELEASE

    For More Information Contact:

    James A. McDevitt, United States Attorney
    Telephone No. (509) 353-2767

    Thomas O. Rice, Criminal Chief
    Telephone No. (509) 353-2767

    OWNERS AND EMPLOYEES OF DIPLOMA MILL INDICTED

    FOR CONSPIRACY TO COMMIT WIRE FRAUD, MAIL FRAUD AND MONEY LAUNDERING


    Spokane – Today, James A. McDevitt, United States Attorney for the Eastern District of Washington, announced that a Federal Grand Jury in the Eastern District of Washington returned a three-count Indictment charging eight individuals with conspiracy to commit mail fraud and wire fraud. According to the 40-page Indictment, Dixie Ellen Randock, Steven Karl Randock, Sr., Blake Allan Carlson, Heidi Kae Lorhan, Amy Leann Hensley, Roberta Lynn Markishtum, and Kenneth Wade Pearson, using the internet, conspired to manufacture, print, and sell fraudulent academic products, i.e., high school diplomas, college and graduate-level degrees, and related documents to consumers throughout the world so those consumers could get hired or promoted in their jobs or obtain H1B Visas. Thousands of degrees were sold. The Indictment alleges that Colbert, Washington residents, Dixie Ellen Randock and Steven Karl Randock, Sr. owned several diploma mills and related businesses, including “Saint Regis University,” Robertstown University,” “James Monroe University,” James Monroe University High School,” and Trinity Christian School.” According to the Indictment, by accessing one of those websites and paying fees between $399 and $2,454, consumers could be “evaluated” for a degree by Heidi Kae Lorhan, a high school dropout, and Amy Leann Hensley. Alternatively, a consumer could access one of their websites and take a 125-question test, answer only twenty-five percent of the questions correctly, and be awarded a high school diploma. The degrees and related documents would then be printed and shipped to consumer throughout the world.

    According to the Indictment, to make the degrees look official, Spokane businessman, Blake Allan Carlson, manufactured fraudulent rubber stamps and seals, and Spokane resident, Kenneth Wade Pearson, acted as the web server for several of the diploma mill websites. According to the Indictment, Mead, Washington resident, Roberta Lynn Markishtum, printed some of the fraudulent documents and falsely confirmed via telephone to employers and potential employers that the degrees purchased were valid.

    As part of the scheme to defraud, the Indictment alleges that Dixie Ellen Randock and Steven Karl Randock, Sr. also caused a fabricated website to be created, which posed as the official and legitimate government website of the Liberian Embassy in Washington, D.C. The Indictment also alleges that Peoria, Arizona resident, Richard John Novak, worked as a “consultant” to process the fraudulent degrees sold to foreign consumers. The Indictment also alleges that a Special Agent with the United States Secret Service, Department of Homeland Security, while acting in an undercover capacity as a retired Syrian military officer who wanted to quickly obtain an H1B Visa, and using the undercover name Mohammed Syed, was able to purchase from “James Monroe University” degrees in chemistry and environmental engineering.

    Dixie Ellen Randock and Steven Karl Randock, Sr. are also charged with conspiring to launder $1,026,874.80 as a result of the diploma mill scheme. The Indictment seeks forfeiture of the Randock’s property and other assets including their Colbert home, approximately $55,000 in U.S. currency and $480,000 in various bank accounts, and a 2001 Jaguar.

    If convicted of the wire and mail fraud conspiracy, each defendant could be sentenced to up to five years in prison, a $250,000 fine, three years of supervised release, the payment of restitution, and a $100 special penalty assessment. If convicted of the money laundering conspiracy, Dixie Ellen Randock and Steven Karl Randock, Sr. could be sentenced to up to twenty years in prison, a $500,000 fine or twice the amount of money laundered, five years of supervised release, and a special penalty assessment of $100.

    The case is being investigated by a multi-agency task force led by the United States Secret Service, in cooperation with the Internal Revenue Service, Criminal Investigation, Department of Treasury, the Bureau of Immigration and Customs Enforcement, the Washington State Attorney General’s Office, the Spokane Police Department, the United States Postal Inspection Service, and the United States Attorney’s Office for the Eastern District of Washington. The case is being handled by Assistant United States Attorney for the Eastern District of Washington, George J.C. Jacobs, III.

    The United States Attorney’s Office in Spokane has established a 1-800 number if you believe that you were a victim of the fraud or can provide information to the investigators. The telephone number is 1-800-775-6357.

    An Indictment provides notice to the individual of the crimes he/she is alleged to have committed. Each individual is presumed innocent until proven guilty beyond a reasonable doubt.


    Penny Pass
    Executive Assistant
    U. S. Attorney's Office
    Post Office Box 1494
    Spokane, WA 99210
    (509) 353-2767
    (509) 353-2766 Fax
    [email protected]
     
  4. Bruce

    Bruce Moderator

    With a rather large "thud". :D
     
  5. galanga

    galanga New Member

  6. Jack Tracey

    Jack Tracey New Member

    And to think that I was worried that this day might end on a bad note.
    Jack
     
  7. JamesK

    JamesK New Member

    For the record, the post disappeared by 10:51AM (GMT+9:30) (or whenever the time the post states).
     
  8. uncle janko

    uncle janko member

    Martin Luther King, Jr. (dubious diss & not nearly as good a preacher as his father) said, "the arc of history is long but it bends toward justice."
     
  9. Bruce

    Bruce Moderator

    I reposted the press release, and promptly had my IP banned. :cool:
     
  10. uncle janko

    uncle janko member

    Banned in Boston! You???
     
  11. Bruce

    Bruce Moderator

    That used to be a badge of honor! :D
     
  12. uncle janko

    uncle janko member

    consider the source...

    In this instance, it still is. Hearty congratulations! You always make us proud, Bruce. Now more than ever.
     
  13. galanga

    galanga New Member

  14. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    Just out of curiosity: Did both MLK Sr. and MLK Jr. leave historical records of their sermons? Have you attended services conducted by both MLKs? Just wondering how you knew that MLK Jr. was not the preacher his daddy was.
     
  15. Rich Douglas

    Rich Douglas Well-Known Member

    I tried the link and got a message saying it was a private board and only an administrator could give me access.

    I wonder if they have grand juries in Denmark?
     
  16. Jake_A

    Jake_A New Member

    Woo-hoo!
    Yipeee!
    We want more! We want more! We want more!

    Good reporting job, Sir Galanga!

    'Tis time for our hallowed and heroic mill-busters to begin going over, with a microscope and fine tooth comb, certain diploma mill lists in existence, including ODA's and others, or simply, any list with SRU and Degrees-R-Us on it.

    :D

    Please do not ask me to define who is included in my use of "we" above. If I have to, I will include in my "we" all law-abiding and ethical inhabitants of the planet Mars, which, not too long ago, was claimed by His Great Excellency Chief Cosmonaut (with the curtain rod) ....... whatever-is-his-name-again?

    LOL.

    :)
     
  17. BillDayson

    BillDayson New Member

    This is great news. I hope that it's just the start of a national get-tough policy on mills.

    Will felony convictions and federal prison sentences in the SRU case motivate a mill-migration to sunnier offshore climes?

    Speaking of rats jumping off sinking ships, it's entertaining to watch all the back-pedaling among former SRU managers and spokesmen (several of whom vociferously defended SRU right here on Degreeinfo). Now they all seem to be swearing on a stack of Bibles that they are victims themselves, that the evil Randocks hoodwinked them, etc. etc.
     
  18. miguelstefan

    miguelstefan New Member

    I just hope the Feds keep the momentum going and take care of some more "mills" in the meantime. Lock' Em Up and Throw Away the Key...
     
  19. antraeindubh

    antraeindubh New Member

    A certain well known Diploma Mill in Metarrie, LA had the bad luck of setting up shop behind my office (where it used to be anyway until Katrina ripped it apart). As part of my job - I investigate the validity of claimed education - a middle-aged lady in blue eye shadow answered the door of this esteemed university - but she would not allow me into their sprawling campus, located in a tiny suite, in a rundown office building. She refused to provide a transcript - saying that they were thirty dollars.

    Boy did her eyes pop out when she saw that federal badge...they had just changed their name in an effort to stay ahead of us for a few months...and because a real school in San Antonio won a lawsuit against them...her outfit has an office in Beruit and has been defrauding soldiers fighting in the war on terror. I was glad to cause them as much trouble as I could.

    We've washed a LOT of people out of top gov't jobs for having fake diplomas - if I have to work my a$$ off for my degrees, why should they get a pass?

    There were a HUGE number of "universities" operating out of Mailboxes, Etc. and other locations in that part of LA and over in MS too. I wonder how much of an affect Katrina had on their operations???

    J.
    Diploma, FCPSTC
    BA, Eugene Lang College
    MBA, (in progress) St. Joseph's College of Maine
     
  20. John Bear

    John Bear Senior Member

    J: I wonder how much of an affect Katrina had on [degree mill] operations?

    John: It is so easy to change the address to which the mailbox service forwards your mail.

    In the 1906 San Francisco quake, one of the few large downtown buildings left standing was the Hotaling Whiskey Warehouse, prompting the jingle, at the time:

    If, as they say, God spanked the town
    For being over-frisky,
    How come He burned the churches down
    And spared Hotaling's whiskey?

    In the present situation, we could say,

    If, as they say, God sent the storm
    To punish non-believers,
    How come the churches flooded out,
    But not the "school" deceivers.
     

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