December 15, 2005

In a lawsuit announced today by Attorney General Richard Blumenthal, the state is taking action against the recently closed Galen Institute, LLC, a related company, its owner and his wife for multiple violations of state education, consumer protection and other laws.

The action was announced by Blumenthal, Department of Higher Education (DHE) Commissioner Valerie F. Lewis and Department of Consumer Protection (DCP) Commissioner Edwin R. Rodriguez.

The violations include falsely advertising that the therapeutic massage school was properly accredited, charging illegally high interest on some school loans, failing to pay into the state business and trade school tuition insurance fund, operating an illegal online school and failing to provide records. The state will also seek as much as $1 million in restitution for qualifying Galen students.

In addition to Galen Institute, the action names as defendants the Galen Institute School of Massage Therapy and company owner James J. Lattanzio Jr. and his wife Sandra Lattanzio, both of Windham.

"This school shortchanged students by taking their tuition and time, and falsely promising accredited training," Blumenthal said. "Instead of teaching stress relief, Galen left its students truly stressed over lost savings, wasted effort and shattered dreams. The school and its owner cruelly deceived students by claiming that its courses were properly accredited when they were not. Indeed, after failing to attain proper accreditation, Galen invented its own accrediting organization, which it named the Council Overseeing Medical and Massage Therapy Accreditation (COMMTA), a self-serving, deceptive means to circumvent the law. The newly created accrediting agency's acronym, COMMTA, bore strong resemblance to the name of the genuine agency, COMTA. Adding to the injury, Galen's owner charged some students exorbitant and illegal interest rates exceeding 12 percent on loans to pay tuition.

"Our main goal is money back for all students - full refunds amounting to as much as $1 million. Students can count on refunds from the state tuition insurance fund, but we will seek full reimbursement from the school to the state. The school failed to fully pay its share, and should be held accountable. My office will fight for restitution, civil penalties and disgorgement of all ill-gotten profits from the school and its owners," Blumenthal added.

"Galen failed its students after they laid down their time, money and trust," said Lewis. "It failed the community of legitimate private occupational schools who work hard to serve our students and our state. And it failed to meet Connecticut's high standards for postsecondary education, and its promises to live by Connecticut law. No organization that has caused such distress and has so blatantly disregarded the rules should be able to just close its doors and say the problems they created are no longer theirs. As the state pursues justice in these matters, the Department of Higher Education will vigorously pursue rightful returns to students.

"Galen students who wish to obtain a tuition refund and a copy of their transcript should contact the Department of Higher Education through our website at www.ctdhe.org or by calling our toll free Education Center Hotline at 1-800-842-0229," Lewis added.

"Students were given false and deceptive promises of a career path, only to eventually find they were ineligible to practice their profession," Rodriguez said. "The financial loss and mental strain on students caused by the school's lack of accreditation goes beyond unethical. It is fraudulent."

Blumenthal, Lewis and Rodriguez will ask the court to order restitution, most of which will likely reimburse the state tuition insurance fund for providing tuition refunds to qualifying Galen students. The state estimates about 100 students, who paid $9,600 each, were enrolled when the school closed in late October, meaning that restitution could reach $1 million or more.

The action also seeks court orders prohibiting destruction of records, requiring transfer of all school files to DHE and prohibiting the Lattanzios from operating its online massage therapy school. It also seeks civil penalties, disgorgement of all revenues resulting from unfair or deceptive business practices and the state's legal costs.

The DHE authorized Galen to begin operating on Feb. 4, 1998. State law gives therapeutic massage schools 33 months to win accreditation. During that time, graduates may take the test for a state license.

Galen, however, failed to obtain proper accreditation. In June, 2004, the state Department of Public Health (DPH), which decides who qualifies to take the therapeutic massage licensing test, ruled that Galen had failed to gain accreditation and its students no longer qualified for licenses.

Galen claimed it was accredited by the Council Overseeing Medical and Massage Therapy Accreditation (COMMTA). COMMTA, however, is an accrediting agency created by Galen's owner and not recognized by the U.S. Department of Education.

Connecticut massage therapy schools must be accredited by an entity recognized by the Department of Education, including the Commission on Massage Therapy Accreditation (COMTA). Galen has never accredited by COMTA or any other entity recognized by the federal Education Department.

The lawsuit also charges that Galen:

• In 2004 and 2005 underpaid or failed to pay the required 0.5 percent of its gross tuition into the state Private Occupational School Student Protection Account, a tuition insurance fund for occupational school students.
  
• Failed to turn over all its student records to the DHE after it closed.
  
• Operated an online school, Galen Institute School of Massage Therapy, without the required state authorization.
  
• Charged more than the 12 percent interest allowed by state law on student loans.
  
• Falsely claimed in advertisements and told prospective students after July 1 that Galen was properly accredited and graduates would be qualified for a state therapeutic massage license. In fact, no students enrolled after July 1 could become Connecticut-licensed massage therapists because the school lacked proper accreditation.

The school, which had locations in New London, Willimantic, Wethersfield and Stamford, informed DHE on October 31 that it had closed. The Wethersfield location closed in July, while the other three shut down in October.