SAN DIEGO (KGTV) -- Accusations of altering documents to receive federal money. That’s the claim in court records against Argosy University, which operates The Art Institute of California in San Diego.
Court documents accuse the university of charges including changing submissions to the Department of Education to get student financial funds.
Argosy University operates more than a dozen locations across the country, including the Art Institute of California in Mission Valley.
The Department of Education sent millions of dollars to Argosy.
What it didn’t know and what’s alleged in court documents is the university was using the money that was supposed to go to students to pay for things like operating expenses.
The filing was made on behalf of a court-appointed receiver, the independent outside party to handle the university’s finances.
10News reported earlier that the Education Department stopped all financial aid to Argosy.
In July of 2018, the Art Institute in Mission Valley stopped enrolling new students. Current students say they’re frustrated and nervous.
10News reached out to Argosy’s parent company for a response but hasn’t heard back.