S. Hrg. 108–553 BOGUS DEGREES AND UNMET EXPECTATIONS: ARE TAXPAYER DOLLARS SUBSIDIZING DIPLOMA MILLS? HEARINGS BEFORE THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS SECOND SESSION MAY 11 AND 12, 2004 Printed for the use of the Committee on Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 94–487 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 09:28 Aug 23, 2004 Jkt 094487 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\94487.TXT SAFFAIRS PsN: PHOGAN COMMITTEE ON GOVERNMENTAL AFFAIRS SUSAN M. COLLINS, Maine, Chairman TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii ARLEN SPECTER, Pennsylvania RICHARD J. DURBIN, Illinois ROBERT F. BENNETT, Utah THOMAS R. CARPER, Delaware PETER G. FITZGERALD, Illinois MARK DAYTON, Minnesota JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey RICHARD C. SHELBY, Alabama MARK PRYOR, Arkansas MICHAEL D. BOPP, Staff Director and Chief Counsel DAVID A. KASS, Chief Investigative Counsel JAMES R. MCKAY, Counsel EILEEN H. FISHER, Professional Staff Member CLAUDIA C. GELZER, U.S. Coast Guard Detailee SARAH V. TAYLOR, Legislative Aide JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel MARY BETH SCHULTZ, Minority Counsel AMY B. NEWHOUSE, Chief Clerk (II) VerDate 0ct 09 2002 09:28 Aug 23, 2004 Jkt 094487 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\94487.TXT SAFFAIRS PsN: PHOGAN C O N T E N T S Opening statements: Page Senator Collins ................................................................................................. 1, 31 Senator Akaka .................................................................................................. 4, 65 Senator Lautenberg .......................................................................................... 5 Senator Carper ................................................................................................. 13 Senator Durbin ................................................................................................. 23 Senator Lieberman ........................................................................................... 33 Senator Pryor .................................................................................................... 53 WITNESSES TUESDAY, MAY 11, 2004 Hon. Tom Davis, a Representative in Congress from the State of Virginia ....... 7 Robert J. Cramer, Managing Director, Office of Special Investigations, U.S. General Accounting Office, accompanied by Paul DeSaulniers, Senior Spe- cial Agent, Office of Special Investigations, U.S. General Accounting Office . 10 Lauri Gerald, Former Employee, Columbia State University ............................. 16 Alan Contreras, Administrator, Office of Degree Authorization, Oregon Stu- dent Assistance Commission ............................................................................... 26 WEDNESDAY, MAY 12, 2004 Alan Contreras, Administrator, Office of Degree Authorization, Oregon Stu- dent Assistance Commission ............................................................................... 34 Lieutenant Commander Claudia Gelzer, U.S. Coast Guard Detailee, Com- mittee on Governmental Affairs, U.S. Senate ................................................... 38 Andrew Coulombe, Former Employee, Kennedy-Western University ................. 43 Sally L. Stroup, Assistant Secretary for Postsecondary Education, U.S. De- partment of Education ......................................................................................... 57 Stephen C. Benowitz, Associate Director, Human Resources Products and Services, U.S. Office of Personnel Management ................................................ 60 ALPHABETICAL LIST OF WITNESSES Benowitz, Stephen C.: Testimony .......................................................................................................... 60 Prepared Statement ......................................................................................... 141 Contreras, Alan: Testimony .......................................................................................................... 26, 34 Prepared Statement with attachments ........................................................... 106 Coulombe, Andrew: Testimony .......................................................................................................... 43 Prepared Statement ......................................................................................... 132 Cramer, Robert J.: Testimony .......................................................................................................... 10 Prepared Statement with attachments ........................................................... 79 Davis, Hon. Tom: Testimony .......................................................................................................... 7 Prepared Statement ......................................................................................... 75 DeSaulniers, Paul: Testimony .......................................................................................................... 10 Gelzer, Lieutenant Commander Claudia: Testimony .......................................................................................................... 38 Prepared Statement ......................................................................................... 125 (III) VerDate 0ct 09 2002 09:28 Aug 23, 2004 Jkt 094487 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\DOCS\94487.TXT SAFFAIRS PsN: PHOGAN IV Page Gerald, Lauri: Testimony .......................................................................................................... 16 Prepared Statement ......................................................................................... 100 Stroup, Sally L.: Testimony .......................................................................................................... 57 Prepared Statement ......................................................................................... 135 APPENDIX Memorandum dated April 15, 2004 ....................................................................... 47 Questions and responses for the Record from: Mr. Cramer ....................................................................................................... 148 Ms. Gerald ......................................................................................................... 151 Mr. Contreras ................................................................................................... 152 Mr. Benowitz ..................................................................................................... 155 EXHIBITS 1. Lexington University diploma for Susan M. Collins’ Bachelor of Science in Biology ........................................................................................................... 161 2. Lexington University diploma for Susan M. Collins’ Master of Science in Medical Technology ...................................................................................... 162 3. Chart entitled ‘‘5 Diploma Mills Generated $111 Million in Revenue (1995–2003)’’ ...................................................................................................... 163 4. ‘‘Federal Government Checks’’—made out to diploma mills ......................... 164 5. ‘‘Head Start Checks’’—displays checks from Head Start grantees made out to Kennedy-Western University on behalf of students ........................... 165 6. Poster: ‘‘The Legendary Entertainer Dr. Dante’’ ............................................ 166 7. Poster: ‘‘Dr. Dante and Friends . Hypnotist to the Stars’’ ...................... 167 8. Poster: ‘‘Zimmer Motor Cars’’ .......................................................................... 168 9. ‘‘Columbia State University’s Accreditation,’’ Columbia State University Catalog, page 5 ................................................................................................. 169 10. ‘‘Columbia State University’s Acceptance Letter’’ (from CSU’s catalog). This letter notes that honorary Ph.D.’s have been awarded to Jonas Salk, M.D., among others. It also states in the seal ‘‘Columbia State University—Since 1953’’ ................................................................................... 170 11. ‘‘Testimonial by a former Columbia State University ‘Student’ ’’, by Thom- as Rothchild, B.S., M.S., Ph.D. (from CSU’s catalog) .................................... 171 12. ‘‘U.S. Government Checks Toward Federal Employees’ Tuition at Colum- bia State University,’’ (four checks) ................................................................ 172 13. Chart of list of ‘‘Degrees Available from Columbia State University’’ (from CSU’s catalog). This chart highlights engineering, psychology and health fields ................................................................................................................... 173 14. Chart of Columbia State Photos: one fake, one real. One photo is from CSU’s catalog, and actually depicts Lyndhurst, a historic home in Tarrytown, NY (Hudson River Valley) ............................................................ 174 15. Sample of ‘‘Columbia State University Official Transcript,’’ (from CSU’s catalog) .............................................................................................................