Fact Seventy (November 6, 2007) – Capella University Kickback Scam in the News Again

Once again, the Capella University kickback scam is in the news again. According to today’s Chronicle of Higher Education reports,

“KICKED BACK: An arrangement under which Capella Education Company had been paying the University of California at Irvine $500 for each UC student who transferred to Capella was abruptly halted in October, two weeks after it was made public in a Chronicle news story. The UC system said, in a written statement, that it was ending the five-year relationship because outsiders were "misconstruing this as somehow being, if not illegal, unethical." Under the arrangement, Capella paid Irvine $500 for every continuing-education student referred to it. Capella had paid at least $12,000 to Irvine under the program. The cancellation also affected a three-year relationship Capella had had with the University of California at Berkeley. No money was paid to Berkeley during the period, other than an initial $5,000 set-up fee.”

Of course, Capella’s unethical lying president’s (Michael Oaf Offerman) refusal to disclose how many other schools Capella pays kickbacks to is not mentioned – that would require that Offerman abide by his bogus initiative, “Transparency by Design” which is nothing more than a publicity stunt - along with Michael Offerman personal involvement in the fact that Capella University has (and continues to) violated Federal law. As reported a few weeks ago, Capella University has already been found in violation, on TEN counts, of the Family Educational Rights and Privacy Act.