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
$625K
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