Home > News > May 18, 2007 - Faculty Chair, William Burkett, Plays Games

Capella University Now Admits to Stealing
"Less Than a Million Dollars" from Taxpayers

According to Capella Education Company's latest prospectus filed with the Security and Exchange Commission, dated May 14, 2007 (page F23), they have now updated the amount they've stolen, as a result of the audit being conducted of Capella's books by the United States Department of Education, Office for the Inspector General, from American taxpayers from "approximately $500, 000" to "less than $1.0 million!" Obviously, Capella's been trying to hide their unethical conduct and only releases new information when they believe they're going to get caught. Capella now claims that:

"For the three-year audit period, and for that portion of the 2005-2006 award year prior to our change in policies and procedures described above, we estimate that the total amount of the Title IV funds not returned for learners who withdrew without providing official notification was less than $1.0 million, including interest, but not including any fines or penalties."

Previously, Capella Education Company had stated in another prospectus, dated November 11, 2006 (page 13) that:

"For the three year audit period, the total amount of Title IV funds that was not returned for learners that withdrew without providing official notification was approximately $500,000. If it is determined that we improperly withheld any portion of these funds, we would be required to return the improperly withheld funds."

We can't help but wonder what the actual amount that Capella University has stolen is - only time will tell and we urge the United States Department of Education, Office of the Inspector General to take the harshest actions permissible to stop the theft of taxpayer monies by for-profit Capella University.