Connecticut Attorney General William Tong sued Stone Academy, its owner Joseph Bierbaum, and Paier College of Art for violating the Connecticut Unfair Trade Practices Act by deceiving students about the nursing program's quality, clinical hours, and faculty qualifications while diverting funds to other businesses. The lawsuit seeks millions in civil penalties, restitution for students, disgorgement of profits, appointment of a receiver, and attachment of assets including Bierbaum's mansion.
The state is seeking civil penalties of up to $5,000 per violation (totaling millions), restitution for affected students, disgorgement of all revenues and profits, appointment of a receiver for Stone Academy, and attachment of defendants' assets including Bierbaum's Rocky Hill mansion.
In-house legal teams should review all student-facing agreements, particularly enrollment contracts and program descriptions, for clauses guaranteeing program quality, clinical placement hours, and faculty credentials. Vendor and clinical site agreements should be examined for commitments on training resources and supervision. Intercompany or management agreements between Stone Academy, Paier College, and Joseph Bierbaum must be scrutinized for any provisions allowing or restricting the transfer of funds, cross-subsidization, or shared services. Necessary changes include inserting clear, measurable performance standards with audit rights, explicit prohibitions on diverting student tuition to affiliated entities without transparent justification, and mandatory disclosures regarding program accreditation status and actual clinical placement availability. Refund policies should be aligned with the failure to deliver promised educational outcomes.
Entity
Stone Academy, Paier College of Art, Joseph Bierbaum
Also known as: Stone Academy
Industry
EducationOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/attorney-general-tong-sues-stone-academy
2023 07 13 final stone academy complaint.pdf?rev=f98048530c4
https://portal.ct.gov/-/media/ag/press_releases/2023/2023-07-13-final-stone-academy-complaint.pdf?rev=f98048530c4e4f81aaa9c651a6afd540&hash=5FBE170502843DABE271A62B828601D8
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$2.0M
Attorney General Tong and a coalition of four other states and the FTC sued Zillow and Redfin after Zillow paid Redfin $100 million to shut down its multifamily rental advertising business and transfer clients to Zillow. The settlement requires the companies to restore competition, with Redfin rebuilding its apartment advertising business, and pay $2 million to the coalition.
Attorney General William Tong sent a letter to the Connecticut Insurance Department urging rejection of double-digit rate increases sought by Anthem, ConnectiCare, and UnitedHealthcare for individual and small group health insurance plans covering about 220,000 people. The letter argues the rates exceed inflationary measures and criticizes the carriers for failing to control costs and for poor claims system management, particularly ConnectiCare's transition to Molina Healthcare.
$275K
Connecticut Attorney General William Tong announced a $275,000 settlement with TaxAct, an online tax preparation company, over allegations that between January 2018 and December 2022, TaxAct improperly disclosed detailed customer financial information to Meta and Google through third-party tracking technologies without notifying taxpayers. The settlement requires TaxAct to pay $275,000 and implement new third-party tracking compliance measures, including a review committee, written policies, a tag monitoring system, and two independent third-party audits.
$4.0M
Connecticut Attorney General William Tong and the Federal Trade Commission announced a $4 million settlement with Manchester City Nissan (Chase Nissan LLC) resolving allegations that the dealership double-charged for 'certified pre-owned' vehicles and collected unauthorized junk fees. The settlement requires payment for consumer redress, prohibits misrepresentations, mandates clear disclosure of the maximum total price, and requires express informed consent for all charges.
Attorney General Tong and a coalition of 21 attorneys general and Pennsylvania filed lawsuits against the U.S. Department of Transportation, FMCSA, and DHS to block demands for the personal information of 17 million CDL drivers. The lawsuits allege violations of federal privacy laws and the Administrative Procedure Act, and seek an emergency order to prevent the data transfer.
Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.