Columbia State's Pellar pleads guilty to all nine counts of mail fraud

This makes me very happy. Pellar harrassed me more than all the current mosquitoes combined. Here's the official press release. This surprised me. I thought he would fight it. So he gets 4 to 5 years, on top of the 5 or 6 remaining on his current sentence, which will make him at least 84 on release. And at least a $2 million fine and they are taking away his $1.5 million yacht. Of course he may still have more than $65 million in the Grand Caymans and elsewhere.
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Issued Monday, January 12 at 11:30 a.m. PST

OPERATOR OF ORANGE COUNTY 'DIPLOMA MILL'
TO PLEAD GUILTY TO MAIL FRAUD CHARGES

_______ The former owner and operator of an Orange County-based correspondence school called Columbia State University has agreed to plead guilty to all nine counts of mail fraud that were alleged against him by a federal grand jury last year.

_______ Ronald Pellar, 75, is scheduled to plead guilty to the nine felony counts at 2:30 this afternoon in United States District Court in Santa Ana. Pellar is expected to plead guilty pursuant to a plea agreement, which was filed Friday afternoon and which outlines a scheme in which Pellar ran a "diploma mill" that offered academic degrees from the non-existent Columbia State University (CSU).

_______ After establishing a "mail drop" for CSU in the early 1990s, Pellar started running the diploma mill in earnest in 1996 when he opened a business office in San Clemente. CSU falsely represented itself to be a government-approved university in Louisiana, and it falsely claimed to have faculty and accreditation sufficient to confer bachelor's, master's and doctoral degrees by correspondence in as little as one month. Pellar created promotional materials, including a university catalog, that falsely told prospective students that CSU had an administration composed of Ph.Ds and medical doctors, and that it had received full accreditation from legitimate accreditation agencies. The catalog cover featured a photograph of a building that bore no relation to the fictitious CSU or its San Clemente office. The mailing address was in Metairie, Louisiana, but in reality that was only a mail forwarding service that simply resent all correspondence to CSU's addresses in Southern California.

_______ CSU took in millions of dollars from students around the country in tuition fees during the scheme._ Students around the country were defrauded because CSU gave them the impression that it was a legitimate academic institution, but in reality it was nothing more than a diploma mill.

_______ Pellar, who has been in custody since 1998 on federal contempt charges related to Federal Trade Commission violations, is scheduled to plead guilty before United States District Judge Alicemarie H. Stotler.

_______ As a result of his guilty pleas, Pellar faces a statutory maximum sentence of 45 years in federal prison, although the plea agreement contemplates a sentence in the range of 51 to 63 months. The plea agreement also contemplates restitution of at least $2 million. Furthermore, Pellar is required to forfeit his ownership of a luxury yacht, purchased with proceeds from the fraudulent scheme, that may be valued in excess of $1.5 million.

_______ This case was investigated by the Federal Bureau of Investigation.

_______ CONTACT:_______ Assistant United States Attorney Donald F. Gaffney
_______ _______ _______ (714) 338-3531

_______ Release No. 04-003

 

Another fraud bites the dust. I'm very pleased that his "retirement" years will be spent in jail.

 

84? Still young enough to found an institution of higher learning!

 

I wonder if K-W will at some point face similiar prosecution. Their deceptive practices would seem to indicate so.

 

Well, that's only short by tens of millions of dollars. Still, it's good that they have him and that he will continue to be punished.

I do wonder why he's pleading guilty. It doesn't make sense, given his age. Might as well fight it to the end. Perhaps he's thinking if he pleads guilty, they'll stop looking for the money.

Hmmm...I wonder who inherits it all. Perhaps the answer might be there.



Tom Nixon

 

Tom: I do wonder why he's pleading guilty. It doesn't make sense, given his age. Might as well fight it to the end. Perhaps he's thinking if he pleads guilty, they'll stop looking for the money.

John: Possible, I guess. But if it had gone to trial, he was facing 45 years of sentence. With good behavior and all, he could possibly be out in 4 or 5. And of course he's already escaped once!

Tom: Hmmm...I wonder who inherits it all. Perhaps the answer might be there.

John: His wife and his sister were both heavily involved in the Columbia State operation, but neither was indicted.

 

There could have been reasonable fears that another court case could have entangled wife and sister in legal trouble?

 

Re: Re: Columbia State's Pellar pleads guilty to all nine counts of mail fraud

Perhaps. But according to this chart, the odds are in favor of him being free again: Life Expectancies .pdf file

A 78-year-old man, on average, lives another 8 years. If he makes it to 84 and release--and he'll get consistent medical care in prison--his life expectancy at that point will be almost 90.

Lana Turner died in 1995 at 74.

 

Interesting. I wonder about all that money taken in "tuition" all those years. What usually happens in fraud cases is the victims get restitution. However, how many of his "students" really ARE victims, I wonder?

I hope IRS takes a good close look...

 

Los Angeles Times story

http://www.latimes.com/news/local/la-me-ocbriefs13.3jan13,1,1669490.story?coll=la-headlines-california

 

AP story in San Francisco Chronicle

http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2004/01/13/state1541EST0090.DTL

 

I agree. Here are a few "victims" that are easily googled:

CSU seems to be popular with hypnotists.
http://www.mindtec.co.uk/hyp-reg/london/uri.html
http://www.delafont.com/hypnotists/Michael-Mezmer.htm

I have to give Mr. Mezmer credit for a good stage name. If you look into his eyes long enough you might find yourself believing that his CSU PhD is for real.

Someone using his MS and PhD in computer science. His 3 coworkers at QualityLogic have a BA, AS, and no degree. I guess his doctorate really establishes the pecking order.
http://www.qualitylogic.com/newsletter/q1_02/boise.html

Still others:
http://www.thenewsandfarmer.com/topstories021303.html
http://www.ltsp.edu/catalog/2001/catalog_intro.html
http://www.jeffstatesife.com/brown_bag.htm

This guy's CSU doctorate should have taught him that the degree is not written P.h.D.
http://www.salem.on.ca/directory/agencies/054.html

I think this one is certainly using the CSU BA in order to teach at a community college:
http://www.cpcc.edu/download/Catalog_2003_2004/325-350.pdf

Pastors like CSU too. I guess they can ask God directly for forgiveness:

http://www.threethirtyclub.com/board_of_advisors2.html[/URL

 

"Pellar is scheduled to be sentenced on April 17, and he is likely to face about five years in federal prison and $2 million in restitution."
http://www.govexec.com/dailyfed/0304/031104d1.htm

 

Hey, Mr. Grammar, this should be "liable," not "likely."

Liable should be used only if the subject would be adversely affected by the outcome expressed by the infinitive.

I believe Mr. Peller would be adversely affected by going to prison, don't you?

 

It's always breathtaking to watch real scholarship at work.

Mr Israel quotes a federal publication. Mr Clifton then makes fun of Mr Israel's poor grammar, as though Mr Israel were the author of what he merely quoted. The suggestion for amendment (liable for likely), while folksy, is uncompelling, and the name of the prospective jailbird is misspelled by Mr Clifton.

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It must really rattle failed mill operators to see this happen to a successful scammer. Congratulations to Dr Bear on a long-awaited vindication. May it give flummerers far and near some food for thought.

 

Hey, Mr. Spelling, it's "Pellar," not "Peller."

I don't believe Mr. Pellar would be adversely affected by this, though.

 

Jimmy Clifton wrote:

> I believe Mr. Peller would be adversely affected by going to
> prison, don't you?

In Mr Pellar's case, the correct wording would be "staying in prison".

> Liable should be used only if the subject would be adversely
> affected by the outcome expressed by the infinitive.

That's good advice as stated, but I don't think you can infer the converse. One is likely (not "liable") to pass a course; one may be likely or liable to fail it.

By the way, do you believe that Jesus' precept of "turning the other cheek" is compatible or incompatible with a vindictive streak?

 

Hi, Mark,

Vindictiveness has nothing to do with my comments. I was just trying to show the absurdity of correcting someone's grammar on boards and forums. Perhaps I was not simplistic enough.

We all make mistakes and typos via these types of communicative venues. I could point out a plethora of grammatical errors on your posts as well as nearly everyone else's.

Secondly, the remarks by Jesus speak of enemies and I do not consider you an enemy. This verse expands the Q sayings.

This verse deals strictly with retribution against malevolence in the sense of avoiding physical violence or damages.

This leaves room for the possibility of psychological and/or moral confrontation.

The parallel in Romans 12:19-21, based on Proverbs 25:21-22, is important in showing that this verse is a strategy for winning, not for passive resignation or indifference to evil. The objective is to shame the opponent into a transformation of the heart.

This presupposes the requisite dispositions in the opponent that are not always present.

Looking at this verse from the Peshitta, it means "do not start a quarrel or fight."

You started this, Mark, not I. Now let's hope this silliness on both our parts comes to an abrupt halt.

 

Mark, show some respect! This thread is about a mill operator getting caught. Just because such a prospect doesn't rattle you or me doesn't mean that really sensitive souls might not be on edge. Remember, too, that denying abusiveness is as good as not having done anything, and acting hurt is proof of innocence. Really, Mark, your expectations of coherence and ethics are sooo cruel. I hope that being showered with pseudobiblical irrelevancies shapes you up and teaches you to make nice. After all, one can never be too simplistic.

 

I think I would select another nom de plume, Mark.