Two flight training companies and their owners are being sued (PDF) by Wachovia Bank, which is alleging fraud in the alleged improper disbursement of student loans. As we reported last May, a number of students were caught in the middle of their training when Jet University abruptly closed. Now, some of those students are either unwilling or unable to repay student loans provided by Wachovia Bank and the bank is now saying they shouldn't have gotten the money in the first place.
In the suit filed earlier this week, the bank claims that Jet University was not properly accredited and students got their money through a fraudulent arrangement with SimCenter, a properly accredited institution that applied for the loans on behalf of Jet University. The two institutions then split the money, according to the bank's suit. Both institutions plus Henry George, owner of SimCenter, and Heath Cohen, owner of Jet University, are named in the suit.