LANCASTER — The Bureau of Private and Postsecondary Education has ordered Antelope Valley College to cease all operations by Friday, citing the private, for-profit school's dire financial situation, poor management and inadequate facilities.
The university was forced to close its campus along Sierra Highway last month and notified employees the day before payroll on Feb. 16 that they would receive 25 percent of their salary by cheque and the rest in Genius Group Limited shares, which they could convert into cash within two to three business days if they wished.
The certification of UAVs is also in jeopardy. The WASC Commission on Schools and Colleges suspended UAVs last August. The commission found that UAVs “have significant issues that violate WSCUC standards,” it said in an Aug. 22 letter to Chancellor Tracy West.
On Thursday, the department issued an emergency decision ordering Antelope Valley College to cease enrollment of new students in all institutional programs, cease all instruction in all institutional programs, cease collection of tuition and fees for all institutional programs, and cease operation of all degree programs, the notice states in bold capital letters.
“The emergency decision is a serious step the agency is taking to protect students, prevent misrepresentation to the public, and prevent the loss of funds paid by students,” agency spokesman Matt Woodczek said in an email. “The agency has determined that if the UAV continues its current operation, there is a risk of significant harm to students.”
As of Feb. 27, the university is actively recruiting students for programs that have already been approved to be fully online, the university said in a statement. Antelope Valley Press.
The university did not immediately respond to a request Monday for a response to the department's order.UAV's website on Monday featured a large box on its home page that read, “UAV Celebrates Black History Month.” Beneath the box was a blue box with updates on UAV's transition and relocation.
Clicking on the box took me to the same page that was posted after the Sierra Highway campus closed. The message read, “We apologize for the delay in getting back to you. We have been trying to get specific answers before reaching out to you, and will use this page to continue to update you as we go through this process. We don't yet have all the answers you're looking for, but we have some important information to share. As you know, we are in the process of relocating our campus.”
Genius Group acquired UAV from founders Marco and Sandra Johnson in July 2022. The Johnsons maintained ownership of the Sierra Campus and the Pioneer Events Center on Valley Central Way.
Late last year, they filed two lawsuits for unlawful occupation, seeking damages, possession of the premises and forfeiture of the lease after Genius Group failed to pay rent.
Antelope Valley College countersued the Johnsons on nine counts, including breach of contract, fraud, deception and intentional misrepresentation.
“UAV is currently embroiled in an action for unlawful occupation of the property due to unpaid rent,” the agency's letter states. “Roger Hamilton (CEO of UAV and Genius Group) has stated that he expects summary judgment in the matter to be entered on or about February 26, 2024, which will result in UAV being evicted from the property.”
According to the agency's letter, UAV entered into a consent decree for unlawful occupation on Feb. 23, stipulating that the university must vacate the Sierra Highway site by Feb. 29 and the Pioneer Events Center by Monday.
Additionally, the department's letter states that UAV's audited financial statements for the fiscal year ending Dec. 31, 2022 “failed to demonstrate the minimum overall score required by 5 CCR Section 71745.”
Authorities also noted that UAV had failed to pay employees their full salaries on time.
“UAV paid employees their unpaid wages one week after the scheduled payday,” the agency said.
The university also could not provide students with refunds for their Title IV credit balances.
“UAV has 396 students who need outstanding credit balance refunds and 375 students have not received their credit balance refunds within 14 days,” officials said.
Additionally, on December 11, the U.S. Department of Education designated UAV as Enhanced Cash Monitoring 2, citing that UAV did not meet standards for financial responsibility.
Regarding management inefficiencies, the department noted that the Department of Education had placed UAV in Enhanced Cash Monitoring Level 2 for not meeting standards for management competency, and that UAV had required staff to sign non-disclosure agreements in violation of state law.
“Due to the resignation of multiple members of UAV's administrative staff, UAV does not have the administrative personnel to continue running the program,” the letter states.
The department also said the university's “facilities are in severe disrepair and UAV has sought to vacate the campus by (February 26) as part of its plan to defeat summary judgment in its unlawful occupation lawsuit.”
“UAV outlined plans to transition all students in its degree programs to fully online programs without obtaining the required student consent,” the letter said.
“UAV has not indicated plans to continue its ground-based certification program. Plans by educational institutions to change how they instruct students and discontinue teaching certification programs could put students at risk.”
“Situations like these require the department to take immediate action to protect students, prevent misrepresentations to the public, and prevent the loss of public funds and student payments,” the department's letter said.
