The American Career Institute (ACI), including its Cambridge campus, abruptly closed its doors in 2013, leaving a trail of deceived students in its wake. Among the various programs offered, the medical billing and coding course at the Cambridge location became a focal point of the institution’s fraudulent practices, as revealed by the Massachusetts Attorney General’s office. This article delves into the details of the ACI scandal, specifically highlighting the impact on students enrolled in the medical billing and coding program at the Cambridge campus and the steps former students can take to seek relief.
Image: File photo of the American Career Institute Cambridge campus, reflecting the institution’s sudden closure and the disruption it caused to students enrolled in programs like medical billing and coding.
The Attorney General’s investigation uncovered a disturbing pattern of misconduct by ACI officials across all its Massachusetts campuses, including Cambridge. These officials confessed to a range of illegal activities, from falsifying student records to misleading prospective students about job placement rates. For students aspiring to careers in medical billing and coding at the Cambridge campus, this meant they were potentially enrolled in a program built on a foundation of lies and deception.
According to the Attorney General Maura Healey’s office, ACI engaged in “deceptive schemes” that directly harmed students. These schemes included:
- Record Falsification: ACI officials manipulated student grades and attendance records, creating a false impression of academic progress and program quality within the medical billing and coding course and other programs.
- Unauthorized Signatures: Staff members signed student documents without their consent, a clear violation of ethical and legal standards, impacting students’ official records in the medical billing and coding program.
- Misleading Job Placement Rates: Prospective students interested in the medical billing and coding program at the Cambridge campus were given inflated and fabricated job placement statistics, creating unrealistic expectations about their career prospects post-graduation.
- Guaranteed Employment Lies: ACI falsely promised guaranteed job placement upon graduation to attract students to programs like medical billing and coding, a promise they could not and did not keep.
- Unqualified Admissions: Students who did not meet the minimum requirements for admission and were ineligible for federal student loans were unlawfully enrolled in programs, including medical billing and coding, and charged tuition.
- Fake Job Placements: ACI fabricated documents showing job placements at nonexistent companies or companies that never hired ACI graduates, further deceiving students about the value of their medical billing and coding education and other training.
The Cambridge campus, along with other Massachusetts locations in Springfield, Braintree, Framingham, and Woburn, offered courses like medical billing and coding, dental assisting, and computer programming. Tuition costs reached as high as $23,000 per year, a significant financial burden for students who were often taking out loans to pursue career training in fields like medical billing and coding.
Between 2010 and its closure in 2013, ACI amassed over $30 million in federal student loan money, representing a staggering 89% of its total revenue. This highlights the institution’s heavy reliance on federal funding while allegedly engaging in widespread fraud that directly impacted students seeking legitimate career training in areas like medical billing and coding at the Cambridge campus.
A consent agreement was reached in Suffolk Superior Court where ACI officials admitted to their widespread illegal conduct. While a judgment of $25 million in civil penalties was ordered, it is unlikely to be collected due to the school’s insolvency. However, all officials and directors are now permanently prohibited from operating career or vocational programs in Massachusetts, preventing similar scams in the future.
For the over 4,400 former ACI students, including those from the Cambridge medical billing and coding program, there is a possibility of loan relief. The 1,400 students enrolled at the time of closure are specifically entitled to loan discharges. The Massachusetts Division of Professional Licensure has already secured $2 million in loan discharges through separate legal actions.
If you are a former student of the American Career Institute, particularly from the Cambridge campus and enrolled in the medical billing and coding program or any other course, it is crucial to contact the Attorney General’s Office. You can reach the Student Loan Assistance Unit Hotline at (888) 830-6277. Additionally, you can fill out the ACI Student Contact Information Update Form to ensure the Attorney General’s office can assist you in exploring potential loan relief options. This is a vital step for those affected by the fraudulent practices of the American Career Institute and seeking to overcome the financial burden of student loan debt incurred due to the school’s misconduct.
