Hawaii Litigation Update: AWU

On February 13, 2004 the First Circuit Court of the State of Hawaii entered a summary judgment against the American World University of Iowa (an Iowa corp) and American World University (a Louisiana corp).

Under the terms of the judgment, both corporations are enjoined from operating any degree granting institution in, from or under the color of Hawaii law. The judgment also directs the state's Business Registration Division to terminate their corporate existences. The defendants were also ordered to offer full restitution to any students or graduates who enrolled between July 1, 1999 and May 27, 2003. The court also imposed civil penalties of $125,000 on each defendant.

Anyone wishing to see an unfiled electronic version of the default judgment may email requests to [email protected]. Please specify the name of the university in your request.

Jeffrey E. Brunton
Staff Attorney
Office of Consumer Protection
State of Hawaii

 

Thanks for the update. Job well done!

 

Is the judgment against the corporations and/or the individual owners- shareholders?

 

but they say WAUC likes them a lot!

From the AWU site:

American World University is accredited by WAUC, a global accreditation association.

Maybe AWU should sue WAUC, or at least request return of its initials, transforming "WAUC" into "C."

G

 

The judgment is against the two corporations as defendants and not any shareholders or owners.

 

Job excellently well done.

Jeff,does this AWU has any connection with the Iowa and now Mississippi AWU?www.awu.edu

 

Yes, this is Maxine Asher's AWU. She has established corporations in various states and perhaps foreign countries. Only two of those corporations (the Iowa and Louisiana corps) registered as foreign (i.e. out-of-state) corporations with our Business Registration Department, hence being subject to Hawaii law.

The actual mechanics of how each of these various corporations relate to each other is a mystery. For example, whether they are sister or parent-sub relationships, common owners or management, financial relationships etc. are all questions which normally would have been probed during pre-trial discovery. In our case, the two corporations simply refused to answer interrogatories and produce requested documents despite a court order requiring them to do so. Had the court not granted summary judgment (i.e. judgment without full trial), we had scheduled a default judgment hearing for the following week based on the defendants' failure to obey the court's order regarding discovery. That default judgment hearing was rendered moot by the court's entry of summary judgment.

 

I would bet these are shell corporations with little or no assets. If so, couldn’t you go after Dr. Asher as the alter-ego of the corporations? Getting to the promoters is the only way to stop these scams.

According to their website, they’re having a graduation ceremony in Las Vegas this month.

"20% Discount to All New Students Students Who
Enroll Between 02/05/04 - 2/28/04 AND
Will Also Receive ONE FREE NIGHT AND FREE ADMISSION
with dinner to the AWU
Graduation in Las Vegas, Nevada to be held on 2/22/04.
The offer also includes 1 night free lodging at a major Las Vegas hotel!"

Free Cap & Gown at Graduation!
2. Tuition Payment Placement - $300 Down Payment
with $100 Monthly Payments with No Interest
3. 50% Discount for Family Members
4. 10% Discount if Tuition is Paid in Full!


If you want to serve her with a summons on the 22nd I suspect we could raise enough in donations to reimburse the State of Hawaii for your travel expenses.

 

Ashers to ashers
an' dust to dust:
mess with Jeff Brunton
an' you'll go bust.

Another triumph for the Bruntonator.