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
$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.
$8.0M
Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.
Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in filing an amicus brief challenging DHS’s policy and practice of conducting warrantless civil immigration arrests. The press release describes a court challenge, not a privacy enforcement action or monetary penalty.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.