Globe, MN Business Should Repay 'Defrauded' Students: Court

There's more bad news for Woodbury-based Globe University and the Minnesota School of Business. According to a court order filed Wednesday, the schools, which share a common owner, have been ordered to pay back students the court says were defrauded by the schools' criminal justice program.

Hennepin County District Court Judge James Moore found that Globe University and the Minnesota School of Business violated the Consumer Fraud and Deceptive Trade Practices Act. He said the schools falsely claimed they could train students to become police and probation/parole officers.

Students who took part in the program in 2009 and since then will be eligible to be repaid for tuition, student loans, payments for books, fees and any interest they were charged on loans taken out to pay for the school.

The court order comes after the U.S. Department of Education announced in December the schools will no longer be able to participate in the federal student aid program following findings of fraud and what officials call "callous acts of misrepresentation."

Authorities found that Globe and MSB are ineligible to participate in federal student aid programs because they committed fraud involving Title IV program funds.

The schools subsequently announced that they are preparing to close.

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