Business ProfileforGlobe Education Network

According to information from the Minnesota Attorney General: "The Attorney General’s Office began investigating MSB and Globe in 2013. In 2014, the Office sued the schools, alleging consumer fraud and illegal lending practices. On September 8, 2016, the Hennepin County District Court issued an order finding MSB and Globe engaged in consumer fraud and deceptive trade practices by misrepresenting the job opportunities available to their criminal-justice graduates. In 2017, the Court issued an Order awarding an injunction, penalties, and restitution. The order for restitution set up a process for defrauded criminal-justice students enrolled in the program from 2009 to 2016 to claim restitution--which included refunds for tuition paid, other student expenses or fees paid, and interest paid or incurred for taking out a student loan to pay those costs. The process, however, was delayed by appeals and the schools’ bankruptcy filing.

"The restitution process finally began in 2020. Pursuant to that process, the Attorney General’s Office sent out and collected notice and claim forms from eligible former students who attended MSB and Globe’s “criminal justice” program. The Office ended up receiving 920 claim forms from criminal-justice students, though the vast majority of those claims were subject to objections by the schools’ owners. After receiving and responding to those objections, the Office began negotiating a resolution of all issues related to the restitution claims process and to secure maximum relief for defrauded students.

"In March 2021, the Office secured commitments from the schools and the U.S. Department of Education that call for (1) complete discharge of all federal student loan debt related to claimants’ enrollment in the criminal-justice program and (2) additional cash relief of $15.8 million for eligible claimants.  The agreement was filed in bankruptcy court and involved several parties, including the Attorney General’s Office, the trustee appointed to oversee MSB and Globe, the schools’ owners, and the U.S. Department of Education. Relief for criminal-justice students under the agreement includes:   Cancellation of 100% of federal student loans taken out to attend the criminal-justice program for all students who filed restitution claims or testified at trial. This will result in $23.6 million in financial relief overall and applies to all 920 claimants. $12.3 million in additional cash payments to eligible claimants, which provides compensation for amounts paid by eligible students from other sources to attend the criminal-justice program (e.g., payments from private loans, out-of-pocket payments, GI Bill payments, etc.) and payments made towards forgiven federal student loans.  The agreement also provides for a payment to the U.S. Department of Education of $7 million.

"The agreement was confirmed by the U.S. Department of Education and approved by the bankruptcy court in the summer of 2021. After the funding for payments was fully in place, the U.S. Department of Education was able to complete the loan discharge process in late September 2021. Payments then began to be distributed on September 30, 2021. Pursuant to a detailed plan approved by the bankruptcy court, the trustee for MSB/Globe is acting as “Disbursing Agent” and will distribute checks to criminal-justice students. The Attorney General’s Office will assist in identifying the location of eligible criminal-justice students for re-issuance of checks that are returned or remain uncashed." 

Additional information about the case and resources for students who enrolled at MSB and Globe can be found at this page on Attorney General Ellison’s website. Consumers with questions can contact the Office by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota).