*Fraud of the College Scholarship Fraud Prevention Act (TOC)*

Table of Contents


Mega phone

From: Publisher
cc: NAAS Subscribers and Users
Bcc: Domestic and International Affiliates
Reply Contact

Subject: -- Fraud of The College Scholarsip Fraud Prevention Act

Marilee JonesSallie MaeJohn RyanLawrence BurtNACACDallas Martin

*Consent and Indemnification Statement*
Accessing this page constitutes implied consent to all NAAS EAS/N2 Rules. Absolutely no part of this report, either partially or in its entirety, may be used in advertising, selling or for any commercial purpose or downloaded into any computer system for subsequent storage, editing, personal re-prints, or editing, or manipulation of any type. Viewing, reading, or electronically accessing this report by any means constitutes an agreement by viewer with The Companies (as defined per NAAS EAS/N2 Rules) to completely indemnify the same from and against all liability that may arise out of the re-publication and general distribution of this NEWS report. Viewer further agrees to hold The Companies (as defined per NAAS EAS/N2 Rules), the Publisher, and all persons (collectively, jointly, and severally) that have assisted in the investigation, editing, distribution, and publication of this series, harmless from any loss, damage, claim of damage, liability or expense arising out of or resulting from any aspect of this web presentation in general and this specific publication in particular. The viewpoints and fair comment discussed represent the independent opinions of the Publisher, and authors, and do not ---in any way, shape, form or fashion ---- necessarily reflect or represent or are indicative of the viewpoint(s) or opinion of site owner, or any officer, director, or employee of the same. By accessing this report from a general hypertext link, viewer expressly agrees to abide by the terms and conditions of the report, fully consents to all NAAS EAS/N2 Rules, and has established that he/she or it (in the case that the Reader is a non-natural person) has an interest in the subject matter expressed and the contents herein. For context of the full legal disclaimer, please see the legal disclaimer and Publisher's notes on the final page.
*Non-reproduction Policy*
Part IV.
Iran, Afghanistan, Russia , Amongst NACAC Member locations
Locations tied to Terrorism
In reviewing the Membership Directory of its website, and scrolling down the countries where NACAC members are purportedly based, one gets the impression that NACAC members are indeed based all around the world. After all, the categories of countries for NACAC members are printed neatly in alphabetical order ranging from faraway places like ¶Afghanistan, Aland Islands, Albania Algeria, American Samoa, Bosnia and Herzegovina(a former republic of the U.S.S.R.), Central African Republic, Chad, Chile, China, Congo, Croatia, El Salvador, Equatorial Guinea,Gabon, Gambia,Ghana,Haiti, Islamic Republic of ¶Iran, ¶Korea, Russian Federation, Russia, Turkey, Turkmenistan, Uganda, Ukraine, Uzbekistan, ¶Venezuela, Viet Nam, ¶Yemen, Zambia. Many of these countries are havens for drugs, terrorists, and anti-American sentiment.

It is understandable why NACAC would decline general access to or even produce a comprehensive single volume, paper-backed membership directory for purchase by the general public. Nenetheles, it is common knowledge that guidance counselers, admissions counselors, and financial-aid professionals are the bread & butter public members of NACAC, and that sponsors (whomever they may be, and wherever they may reside) provide a greater source of revenue.

The current tacky method for persons to ascertain whether or not arrested, suspicious, or charged persons are members of NACAC is to input the person's first and last name into a Membership section of their website and await for whatever output the web page provides. However, it is possible to alter the code and delete evidence of membership too, and therefore deprive the public of knowing whether or not a particular person was or is a member.

After criticism of the NASFAA membership directory, and its close ties to the SAT industry, an attempt to examine the NACAC membership directory was met with evasiness. As expected of any person with suspect motives, NACAC simply took steps to keep its membership directory out of public view. Despite being a non-profit organization that is allowed to solicit donations from the general public, and which receives certain federal tax exemptions at the expense of tax-payers who do pay federal tax, NACAC limits the distribution and sale of its national membersip directory to "only members."

What is NACAC afraid of? Do members not want their names to be associated with NACAC? On the other hand, if one is proud to be a member of NACAC then wouldn't they want the world to know?

Given the fact that numerous federal laws, and Internal Revenue Codes, require that non-profit organizations make their tax-exempt Form 990 Income statements available for public review, an associated legal question is this: Is there any federal case authority for the I.R.S. to require that non-profit organizations also are required to make their membership lists available to the public for purchase? We believe the answer is yes?

Assuming a non-profot organization has nothing to hide, and can substantiate the cast of characters it associates with, WHY NOT MAKE THE MEMBERSHIP DIRECTORY AVAILABLE????????

Also, by instituting a laborious and error prone software search for members one-by-one, NACAC appears to have set up a convenient obstacle to deprive members of the inquiring public and law enforcement investigators of concrete facts they may need to investigate legitmate concerns.

Part V.
NASFAA Sponsorship of Financial-Aid Information Page
A partnership of Suspicion
In or about June of 1996, NASFAA announced sponsorship of a controversial website designed and operated by an alleged undergraduate Math/Computer Science student purportedly attending Carnegie Mellon University (CMU). In fact, subsequent evidence and published statements by the United States Department of Justice, and the Federal Trade Commission revealed that this same alleged CMU student had been secretly feeding scripted data to scores of law enforcment agencies, ranging from the United States Postal Inspection Service to the FBI, and FTC, during his stay at CMU.

The snitch data was compiled against numerous Americans, particularly on persons that were competitors to financial-aid related businesses he was associated with, or persons who publicly critized his sponsor NASFAA, or persons who commented upon the undisclosed business liasons that NASFAA may be engaged in.

Emphatically, NASFAA announced that it was the "exclusive" and "proud" sponsor of the website to be later known as the The Financial Aid Information Page (a/k/a/ FinAid Page). FinAid Page has also been known to alternatively been referred to by the following names, "FinAid", "The Financial Aid Information Page", "NASFAA Page", or the "web site of the National Association of Student Financial Aid Administrators."

For example, in a post-dated publication dated June 21, 1999, by Newsweek, Inc., and Kaplan Educational Centers, the publication states that the "Web site of the National Association of Student Financial Aid Administrators(NASFAA)" is identical to the web site of FinAid Page. Also, according to the 1997 NASFAA National Membership Directory, NASFAA stated the "NASFAA public web site" as being indexed directly underneath the web site owned by the same federal informant that NASFAA had entered into a partnership with.

In fact, NASFAA and FinAid Page, were often mentioned in the same paragraph by numerous media sources.

Leading up to this announcement, however, it should be noted that this seemingly non-profit, consumer-oriented website, received numerous positive media reveiws from seemingly independent media sources. Just as an addict praises his drug-supplier, suspicious editors and newspaper publishers unconcerned about their integrity gushed praise after praise for the website which would later be identified as being operated as a for-profit venture and run by a federal informant that praised Socialist principles.

For example, the May/June 1996 issue, page 88, of Yahoo! Internet Life boasted that the Financial Aid Information Page was one of only "two websites" that were identified as being "The Best" and were named as four star sites. Thother website was the comprehensive Student Guide website run by the U.S. Department of Education.

The Spring 1996 issue of I-way, which became available on newsstands February 26, 1996, offered that the Financial Aid Information Page was one of the 25 best websites on the Internet that discussed Consumer/Personal Resources and Finance.

The Financial Aid Information Page was named one of the Top 100 Web Sites by PC Magazine in the February 6, 1996 issue. Their review says "When ... you can't dig the tuition out of your porcelain piggy bank, the Financial Aid Information home page may be your savior..."

The October 1995 issue, pages 130-137) of Money Magazine, written by suspicious Derek Gordon, "And don't miss the Financial Aid Information Page recently created by [BLOCKED-OUT], a graduate student at Carnegie Mellon University in Pittsburgh and co-author of the Prentice Hall Guide to Scholarships and Fellowships for Math and Science Students. His site provides an excellent general introduction to the aid chase plus a number of electronic extras...."

Various other magazines, many of which are now defunct and rejected by capitalistic American, also praised by the Socialist website ran by the alleged CMU student. These magazines included Computer Life (August 17, 1995); NetGuide Magazine (August 1995 issue, pages 76-78, 86-88); Internet World (April 1995 issue, pages 110-111); Kiplinger's Personal Finance Magazine (October 1994 issue, page 34); etc.

Suspicious and carefully planted newspaper reviews of The Financial Aid Information Page appeared in these newspapers: The New York Times (August 12, 1996); The Richmond Times Dispatch (July 8, 1996, Metro Business, Page D-19); USA Today (April 17, 1996, Life, Page 4-D); Chicago Tribune (April 11, 1996, News, Page 1); The Detroit News (July 17, 1996, Cyberia); Cleveland Plain Dealer (March 18, 1996, Personal Finance, Pade 2D); Chicago Tribune (January 4, 1996, Page 3) ; Fort Wayne News-Sentinel (April 6, 1996); Knoxville News-Sentinel (March 31, 1996); Sun-Sentinel (March 31, 1996, Lifestyle, Page 1E); and, of course, the Pittsburgh Tribune-Review (March 24, 1996).

Besides magazines and newspapers, many NASFAA institutional members exhorted readers to use the FinAid Page, and many times webmasters and content writers of the websites associated with these universities quoted, preached, and heralded the Socialist rhetoric of the alleged CMU student as if they were his political campaign workers, or personal servants.

The June 1996 announcement of a sponsorship deal by NASFAA, an influential non-profit group with mutiple lobbying ties to the U.S. Congress raised considerable concern in certain education and legal circles. Not only was the apparent relationship quite questionable, but consider the timig.

Part VI.
Suspicious creation of company that was Exclusively sponsored by NASFAA
According to the Pennsylvania Dept. of Corporations, the alleged CMU student and federal informant did not create entity number 2703423 (FinAid Page, Inc.) as a for-profit corporation until on July 9, 1996, yet he was soliciting advertising dollars earlier from servers (the original location where the FinAid Page was hosted) operated by Carnegie Mellon University. In less than 30 days after it was created, this alleged CMU student was able to successfully enter and win a no-bid contract with perhaps the most influential of non-profit association of American colleges and post-secondary institutions.

Barely 60 days later, on September 13, 1996, according to Illinois Secretary of State officer George H. Ryan, an entity by the name of "fastWEB.com, L.L.C." (a/k/a "FastWEB") suddenly commenced transacting business in Ilinois. The company appeared was advertised as a featured and preferred scholarship search-service provider.

FastWEB charges fees to institutions for access to its scholarship-search services database. In its beginning, student users of the service were required to submit detailed information. Unless the student specifically opted out, detailed student information was shared with other NASFAA/NACAC members for solicitation purposes.

The bulk of the users of the FastWEB service have been members od NACAC and NASFAA. In facr, FastWEB has been listed as a "Constituent Member of NASFAA" in NASFAA literature.

In addition to the federal informant, FastWeb was a direct beneficiary of the unusual sponsorship by NASFAA of the FinAid Page. Virtually every reporter, NACAC/NASFAA member, or government employee, who parroted FinAid page, would refer users also to FastWeb. FastWeb has also been prominently mentioned or depicted on websites associated with schools and colleges that are also members of either NASFAA and/or NACAC.

From 1996 until 2001, Leon Heller served as CEO of FastWeb. The timing of his departure raised eyebrows. Nonetheless, in 2007, he again went to the cookie jar. He solicited NACAC members for a NASFAA Seal of Approval for his new business venture.

Evidence suggests that NASFAA agreed to sponsor the federal informat as individual, but the individual person had no formal business entity while operating out of his student apartment. Therefore, the dumb and poorly educated CMU student hastily created a shell corporation that essentially was nothing but a cheap alter-ego extension of himself, and his crappy personality.

Following the announcement by NASFAA, the alleged CMU undergrad "announced an agreement under which NASFAA will sponsor FinAid for at least the next two years." (this statement appears to suggest that NASFAA and FinAid anticipated a long term relationship). In the same press release, the alleged CMU undergrad stated that he is "owner of FinAid." At the same time, he announced that he "helped NASFAA set up its public World Wide Web site."

Given the resources and monies of NASFAA, and its anticipated use of professionals, why would such an organization entrust such major responsibilities to just a CMU undergrad?

As a sign of its hasty creation, and an apparent effort to control the money, finances, and advertising of the business, the Carnegie Mellon University "student" reserved for himself the most significant titles of the corporation, i.e., President, Secretary, and Treasury.

In public and to the news media, many persons may have been under the impression that the alleged student and/or his business was endorsed or sponsored by Carnegie Mellon University because the "student" advertised his office and principal contact address as:
School of Computer Science
Wean Hall 8104
Carnegie Mellon University(CMU)
5000 Forbes Ave.
Pittsburgh PA 15213-3891
Website:  http://www.cs.cmu/~finaid/finaid.html

In reality, evidence from the Pennsylvania Dept. of Corporations suggests that the actual business address was not at a CMU location but was really at "2010 Wendover Street, #1, Pittsburgh, PA 15219. This location was NOT a sprawling office complex, or a Class A commercial building, but was nothing but a residential apartment dwelling that housed numerous Carnegie Mellon University students. The name of the apartment complex was the "Wendover Apartments", in the Squirrel Hill area near Schenley Park.

Part VII.
Universities/NASFAA Members Suspected of Having Parroted the FinAid Page
Tuition dollars/Membership Fees used to spread Political Rhetoric
As part of the scheme to promote passage of the Act, this Publisher reported in 1999 that numerous members of NASFAA were recruited to unify behind the government informant and alleged CMU student. Just as parties were recruited to mislead the public leading up to the Iraq war, their roles were to mislead students and parents, omit references to secret kickbacks received by financial-aid counselors from student-loan companies, refuse to disclose illicit arrangements between schools/financial-aid counselors and student-loan companies, parrot, and promote both the FinAid Page, and the Socialist theories of the CMU student. Namely, mislead and lie to the public and students by rallying around the chief maxim of the informant: "Legitimate companies do not charge processing fees; Do not pay money to get money; Application, processing fees, and handling fees are illegal" and, insinuating that legitimate companies that do in fact charge such fees are doing so illegally.
  1. Montana State University, based in Bozeman, Montana.
    In or about the month of May 1999, the the Financial Aid Department of Montana State University-Bozeman, posted on its web site so-called criteria regarding "Scholarship Search Scams" that was nearly identical, or an exact re-production of the same criteria originally posted by the alleged CMU student. When viewing the page in May of 1999, it was last updated September 17, 1998. Aside from not updating their web pages on a regular and consistent basis, the page had numerous spelling, punctuation, and grammatical errors. For example, it says "win you(sic) fair share" periods are not at the end of all sentences, etc.

    As if it were a possessed robotic monkey, employees of Montana State University-Bozeman appear to cite verbatim, even without the use of quotation marks or even specific references to the FinAid Page, information produced by the alleged CMU student. In fact, Montana State University-Bozeman claims that the information has "copyrigh" protection by the school. What is worse, the information appeared under the headline "The Latest From the Office of Financial Aid Services".

    One hopes that if this school does offer any type of journalism class then: (a) the students will be taught how to spell; (b) the students will be better trained than the Financial Aid Department appears to be; and, (c) the students will be taught what plagiarism means. At press time, the Publisher was in the process of contacting the U.S. Copyright Office for proof of the copyright claims made by this school.

  2. Michigan Technological University, based in Houghton, Michigan.
    According to an article "submitted by Minnesota Association of Financial Aid Administrators", and posted by Michigan Tech on it's web site on Friday, January 26, 1996, students are referred to the "The Financial Aid Information Page" at "http://www.cs.cmu/~finaid/finaid.html". The page cites numerous references about the alleged CMU student, his web site, and even portions of his since abandoned so-called criteria. Michigan Tech also quotes the alleged CMU student extensively throughout its web site.

  3. Marquette University, based in Milwaukee, WI.
    In or about May of 1999, this Publisher was directed to and viewed a web page produced by Marquette University. According to its webmaster, the web page was last updated as of "December 22, 1998." Marquette University referred students to the web page of the alleged CMU student, and provided a direct link to the site. Like Montana State University-Bozeman, this school also appeared to enroll less intelligent employees.

  4. University of Oregon, based in Eugene, Oregon.
    According to a web page that was apparently posted on or about June 03, 1996, but just re-printed in May of 1999 by the Publisher, University of Oregon, and Judy Saling of the Financial Aid Department also refers students to the "The Financial Aid Information Page" at "http://www.cs.cmu/~finaid/finaid.html". In an ironic twist, the University Oregon reportedly quotes the alleged CMU student extensively, and even questions the legitimacy of any type of fee associated with a merit scholarship.

    This Publisher reported that perhaps Judy Saling was either incompetent, a hypocrite, or just a plain dirty liar. For example, it was reported at the time that the Oregon State Scholarship Commission charges a $1 fee for information about *EACH* of the multiple awards it sponsors despite the fact that many of the awards are demographic-specific, according to information researched and compiled by Student Financial Services. By the apparent beliefs or written scripts provided to Ms. Saling, wouldn't the Oregon State Scholarship Commission be a scam?

  5. University of Cincinnati, based in Cincinnati OH.
    The state of Cincinnati has always been a public supporter, friend, and partner of sorts to the FinAid Page and its government-informant creator. While researching the 1999 report, this school had a direct hyperlink to the FinAid page web site, and claimed that it was providing a service to readers as an excuse for citing the page. What was not prominently disclosed is the fact that its Associate Director of financial aid, Ms. Ann Sexton, is listed in a NASFAA Membership Directory.

    On or about September 5, 1996, the then Attorney General of Ohio figuratively jumped in bed with the alleged CMU student also. She used Ohio tax dollars to post this unnecessary statement on the Ohio Attorney General's webiste:" There are several free, legitimate scholarship search services operated on the Internet......helpful resources are the FTC and Mark Kantrowitz's financial aid information page at http://www.cs.cmu.edu/finaid.html"

    Apparently, it either never occured to the brain of Ohio Attorney General that the web page she recommended was in fact a for-profit business enterprise; and, had an unusual business arrangement with a non-profit association; or, she simply was not interested in disclosing those facts to the general public in an effort to falsely boost the credibility of the informant.

    Neither did this career law enforcement officer ever wonder aloud about how was it possible for a Carnegie Mellon University undergrsd student, or student at any other college or university, to be operating a national for-profit enterprise USING computer servers owned by the campus, AND be sponsored by a prominent non-profit associatiom, AND yet have zero years of expertise?

  6. Roeper School, based in Bloomfield Hills, Michigan.
    On December 7th, 0f 2005, Patrick J. O'Connor, Ph.D., Director of College Counseling, placed a psuedo-advertisement on an electronic list-serve operated by NACAC. Most, if not all, of these companies and organizations were also members of NASFAA/NACAC. In support of the philosophy of the federal informant that many NACAC members praise, this Irish decendant stated: "It’s good to know the conventional wisdom about never paying for a scholarship has survived.."

    He went on to encourage his fellow NACAC members to view the hyperlinks he has assembled. These links provided connections to FastWeb, The College Board, Sallie Mae, and puppet author Anna Leider.

    A significant number of the persons and groups recommended by Patrick J. O'Connor have been known to parrot of provide material support for the Socialist ideology of the same federal informant linked to NASFAA.

    Interestingly, many of them have been in the news as either defendants in lawsuits, or subjects of law enforcement probes related to financial-aid schemes.

    No matter how well edcated a person may be [Patrick J. O'Connor ALLEGEDLY has a Ph.D], God-given common sense will trump any person with a cheap degree.

    Despite his Ph.D why didn't smart Patrick J. O'Connor foretell, as this Publisher did in 1999, that many companies and organizations linked to and/or members of NASFAA and NACAC were involved in a national scheme to defraud and bilk students?

As forced affirmative action hiring of women and protected groups have criss-crossed the American landscape, seeped into the judicial hallrooms over the past 20 years, and into the nation's boardrooms, we have witnessed a gradual decline in general standards, the lack of discipline of children, youth gangs, and accountability. Consequently, quality of service, competence, and standards have been declining in many areas.

Witness the surge of products made in China, and other third-world countries with deplorable quality assurance standards.

Made in Chine, means Made to be Inferior. A substantial number of female executives, and incompent male supervisors, for example, in the toy industry, made the decision to manufacture toys in China, and ship these defective products to American children.

Next page 4 of 5 (Part VIII.)
Prostitution of NASFAA and Carnegie Mellon University