State of Hawaii Sues Southwest Intnat'l Univ of Nevada

Discussion in 'General Distance Learning Discussions' started by JE Brunton, Aug 21, 2002.

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  1. JE Brunton

    JE Brunton New Member

    The State of Hawaii, by its Office of Consumer Protection, filed suit today against Southwest International University of Nevada, Inc. (a Hawaii corporation) and its principals James King (a resident of Taiwan) Mao Jung Lee and Adam Y. Han (CA residents). The suit alleges that the defendants violated various provisions in Hawaii's Unaccredited Degree Granting Institutions Law (Hawaii Revised Statutes Chapter 446E)and seeks injunctive relief, restitution, civil penalties and other equitable relief.

    Anyone seeking to view an electronic version of the Complaint may email requests to [email protected]

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

    Does this have any relation to the entity that is incorporated as just "Southwest International University" in both Hawaii and California?

    The Hawaii record shows incorporation 8/6/2001; the California record shows incorporation 6/9/1999 with the same address used in Hawaii.
     
  3. JE Brunton

    JE Brunton New Member

    As always from a lawyer, the answer is yes and no. Techically the two corporations are separate legal entities. On the other hand, there is a link (intended by SWIU of NV, but not by SWIU). Mssrs. Han, Lee and King are believed to be former employees of the original SWIU who have apparently decided to appropriate the name and certain business practices of their former employer.
     
  4. Bill Huffman

    Bill Huffman Well-Known Member

    Jeffery, I just wanted to let you know that I consider your rather dry tidbits of information most delightful and encouraging. I assume that all the entities mentioned in your announcements have business addresses in the great state of Hawaii.

    Does the Office of Consumer Protection, Hawaii, have a web page?

    Thanks,
    Bill Huffman
     
  5. JE Brunton

    JE Brunton New Member

    Bill, I can unequivocally state that our office does have a website. It is some limited value in this specialized area in that it provides a downloadable complaint form and a link to our statute. Hawaii Office of Consumer Protection

    The Hawaii statute applies to those unaccredited degree granting institutions with a "presence" in the state. "Presence" is defined in the law as having an office, campus or address. So the answer to your other question is yes. In fact that is one of the first things we look for before even opening a case file. UDGIs which want to operate under the color of Hawaii law are required to have an "office," defined as an exclusive space used by the UDGI. On the other hand many of the schools we have sued have only had a mail-forwarding arrangement, an office-sharing setup, or a "business-identity" plan.

    I know these quick action reports are rather cut and dried--alright, I admit it, they're downright boring. If anyone is interested in looking at the electronic versions of the pleadings, we consider them to be public records and will forward them when requested. They often contain much more detail about the specific facts and evidence in the case.

    It is important to recognize that at the stage of filing a complaint initiating a lawsuit, the pleadings are simply allegations--i.e. matters to be proven (or not) during the litigation.

    Unfortunately, having been assigned to this detail for the last year, I have to say there really isn't anything very sexy about these cases. Most of these institutions we have sued have already been driven out of other states (or countries) by enhanced laws or increased prosecution. Most of them will end up operating, business as usual, from elsewhere. Those institutions which have something to lose, i.e. assets at risk in the United States, generally settle rather than risk the severe penalties potentially imposable by a court (an effect intended by the statute). Others simply take their profits and close up or move offshore. On the other hand I can state that it has been a joy to work with my counterparts in other states and other countries on the "multi-jurisdictional' cases.

    In any event we are hopeful that we will soon have gotten a handle on the problem (which took root during the decade and a half when our law was reputed to be the weakest in the country). I can say that I expect to be posting several more of these notices over the next few weeks.
     
  6. Jeffrey,
    Thanks much for all your info. Looks as if the SWIU boys have been busy. If only Hawaii's business records had the option to search by an individual agent or officer's name, as well as by business entity name.
     
  7. Bill Huffman

    Bill Huffman Well-Known Member

    Thanks for the URL, I find these laws very interesting in their formation and then how they are applied. For example, reading the law it's unclear to me how it could be used to significantly improve the UDGI situation in Hawaii. Yet thanks to the efforts of your office, it appears that it may be working very well.

    Thanks for the information and I'm very much looking forward to the future notices.
     

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