S. Hrg. 103-491 ABUSES IN FEDERAL STUDENT GRANT PROGRAMS HEARINGS BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS ONE HUNDRED THIRD CONGRESS FIRST SESSION OCTOBER 27-28, 1993 Printed for the use of the Committee on Governmental Affairs 73-880 cc U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1994 For sale by the U.S. Government Printing Office Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 Franklin G. Polk, Minority Staff Director and Chief Counsel PERMANENT SUBCOMMITTEE ON INVESTIGATIONS SAM NUNN, Georgia, Chairman CARL LEVIN, Michigan WILLIAM V. ROTH, Jr., Delaware ROBERT F. BENNETT, Utah Eleanore Hill, Chief Counsel (II) Hon. Claiborne Pell, U.S. Senator from the State of Rhode Island Richard C. Stiener, Director, Office of Special Investigations, U.S. General Accounting Office, accompanied by Clarence Crawford, Director, Education and Employment Issues; Donald Wheeler, Deputy Director, Office of Special Investigations; and Robert Hast, Assistant Director, Office of Special Inves- Alan Edelman, Counsel, Permanent Subcommittee on Investigations David B. Buckley, Chief Investigator, Permanent Subcommittee on Investiga- Scott E. Newton, Investigator, Permanent Subcommittee on Investigations James B. Thomas, Jr., Inspector General, U.S. Department of Education David A. Longanecker, Assistant Secretary, Office of Postsecondary Edu- cation, U.S. Department of Education, accompanied by Donald Wurtz, As- sistant Secretary and Chief Financial Officer, U.S. Department of Edu- Sister Janet Fitzgerald, President, Molloy College, Rockville Centre, Long Island, New York, accompanied by Sister Patricia Morris, Vice President 1. Selected documents from U.S. Department of Education certification and eligibility files regarding Beth Rochel Seminary 2. Beth Rochel School Bulletin, Independent Study Program, dated 1989– 90, 1990-91 and 1991-92 3. Selected documents pertaining to the accreditation of Beth Rochel Seminary by the Accrediting Council for Continuing Education & Training (ACCET), dated August 23, 1990 through October 22, 1991 4. Miscellaneous documents regarding Beth Rochel Seminary Mentor Employees 5. Beth Rochel School for Girls "Personnel Manual" 6. U.S. Secret Service Report of Examination regarding Handwriting Anal- 7. Deposition of Rabbi Jacob Rosenbaum, Director, Beth Rochel Seminary, 9. SEALED EXHIBIT: U.S. Department of Education Pell Grant Program 11. Letter to Beth Rochel Seminary, dated September 23, 1992, from U.S. 12. U.S. Department of Education Decision, issued October 20, 1993, regarding Beth Rochel Seminary's termination of the eligibility to participate in the Federal Student Financial Aid Programs 13. Letter to the Permanent Subcommittee on Investigations, dated September 20, 1993, from Leigh M. Manasevit, Esquire, Brustein & Manasevit, regarding Tzini Berger 14. Selected documents pertaining to U.S. Department of Education eligibility determination of Sara Schenirer Teachers Seminary, Brooklyn, New York, dated August 8, 1974 through May 13, 1993 15. Selected documents pertaining to the accreditation of Sara Schenirer Teachers Seminary by the Accrediting Council for Continuing Education & Training (ACCET), dated September 5, 1988 through April 14, 1992 16. Program and institutional catalogues of Sara Schenirer Teachers Seminary, dated 1988-89, 1989-90, 1990-91 and 1992-93 17. Internal Revenue Service Forms 990 for the years 1989 through 1991, as filed by Sara Schenirer Teachers Seminary 17 199 75 212 135 11 18. Financial Reports (Balance Sheet Compilation) of Beis Sefer Govoha Lebanos Sara Schenirer, as prepared by Hirsch, Oelbaum, Bram & Hanover, Certified Public Accountants, for the years 1989 through 1992 19. Auditor's Reports and Examinations (2) of Sara Schenirer Teachers Seminary's participation in the Student Financial Assistance and Pell Grant Programs, prepared by Samuel Kohn, CPA, for the periods July 1, 1988 through June 30, 1989, and July 1, 1989 through June 30, 1991 and supporting workpapers 20. Settlement Agreement between Sara Schenirer Teachers Seminary and 21. Review of Sara Schenirer Teachers Seminary's Eligibility to Participate 24. Letter to the Permanent Subcommittee on Investigations, dated October 25. Agreement and Understanding Between Sara Schenirer Teachers Seminary and Innovative Consultants (Mr. Yehuda Lowinger), for the period September 1, 1989 through August 31, 1991 26. Letter to Permanent Subcommittee on Investigations, dated October 13, 1993, from George S. Meissner, Esquire, Meissner, Kleinberg & Finkel, regarding Yehuda Lowinger 27. Letter to Permanent Subcommittee on Investigations, dated October 5, 1993, from M. Joshua Aber, Esquire, regarding Yitzchak Eichenthal 28. Memorandum of Permanent Subcommittee on Investigations, dated August 17, 1993, regarding telephone conversation with Michael D. Hays, Counsel for Sara Schenirer Teachers Seminary 29. Memorandum of the Permanent Subcommittee on Investigations, dated September 8, 1993, listing Sara Schenirer Teachers Seminary students who attended multiple schools and received Pell Grants 30. Affidavit of Donald S. Bluestone made to the Permanent Subcommittee on Investigations, dated July 20, 1993, regarding Sara Schenirer Teachers Seminary. 31. SEALED EXHIBIT: Various memoranda of interviews prepared by Office of Special Investigations, General Accounting Office 32. SEALED EXHIBIT: Student files produced by Bais Fruma pursuant to Permanent Subcommittee on Investigations' subpoena 33. SEALED EXHIBIT: Selected Bais Fruma student files from the office of Jacob Ginzburg 34. SEALED EXHIBIT: Monthly account statements and cancelled checks reflecting checking accounts held by Bais Fruma at various banking institutions for the period 1989-93. 35. Letter to Alan Edelman, Esquire, Permanent Subcommittee on Investigations, dated October 20, 1993, from David S. Sabghir, Esquire, regarding appearance before the Subcommittee of Mr. B. Eliezer Herbst 36. Letter to Alan Edelman, Esquire, Permanent Subcommittee on Investigations, dated October 12, 1993, from George S. Meissner, Esquire, regarding appearances before the Subcommittee of Messrs. George Goldberger, Yitzchak Klein, Charles Ettinger, and Tovia Rottenberg 37. Letter to Alan Edelman, Esquire, Permanent Subcommittee on Investigations, dated October 12, 1993, from George S. Meissner, Esquire, regarding appearance before of the Subcommittee of Messrs. S. Kohen and Sandy Gross 38. Various forged verification letters taken from student files from offices of Jacob Ginzburg Page 264 * 274 |