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Online 鈥楧iploma Mills鈥 Shut Down at FTC鈥檚 Request

By Sean Cavanagh 鈥 September 23, 2014 2 min read
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Cross-posted from the .

A federal court judge in Florida has temporarily closed a pair of organizations that the Federal Trade Commission alleges have operated as 鈥渄iploma mills,鈥 taking in more than $11 million from marketing and selling bogus academic credentials over the past few years.

At the request of the FTC, Judge James I. Cohn, of the Southern District Court of Florida, in Fort Lauderdale, issued a that halts a group of organizations and individuals from offering diploma services, saying there is 鈥済ood cause鈥 to believe they violated federal law. The organizations named in the order are Diversified Educational Resources, LLC; Motivational Management & Development Services; and IDM Services, LLC.

The FTC found that those entities and individuals associated with them were putting out misleading information using different websites and collectively functioning as mills, Ioana Rusu, a staff attorney for the agency, told 澳门跑狗论坛.

The commission says the organizations have been selling online high school diplomas since 2006 using a variety of names, such as Jefferson High School Online and Enterprise High School Online. The businesses falsely claimed that enrollees could secure 鈥渙fficial鈥 accredited high school diplomas, for which they were charged between $200 and $300, for use in college, the military, and the workforce, according to the FTC.

The businesses鈥 practices violated federal law by misrepresenting the value of the credentials, and by claiming that the online schools were accredited--when in fact they fabricated an accrediting body to give the appearance of legitimacy to their operation, the FTC said in a statement.

A call by 澳门跑狗论坛 to a number associated with Diversified Educational Resources was not returned, and other efforts to reach the organizations named by the FTC were not successful.

The FTC is a federal agency that is focused on consumer protection, and attempts to stamp out practices it regards as deceptive or anti-competitive. The agency says that has been a high priority. One of its websites with information on how consumers can recognize diploma mills, and 鈥渢he costs of a fake degree.鈥

鈥淎 high school diploma is necessary for entry into college, the military, and many jobs,鈥 Jessica Rich, the director of the FTC鈥檚 Bureau of Consumer Protection, said in a statement on the order. 鈥淭hese defendants took students鈥 money but only provided a worthless credential that won鈥檛 help their future plans.鈥

In this case, the commission voted unanimously to authorize the FTC staff to file the court complaint. The complaint was filed under seal in federal court, and the seal was lifted last week, according to the FTC. The commission says it files a complaint when it has reason to believe the law has been broken on a matter in the public鈥檚 interest.

Rusu told 澳门跑狗论坛 that after the temporary restraining order expires, the FTC will seek another injunction to make sure that the businesses named in the complaint cannot sell diplomas. The agency鈥檚 goal is ultimately to make sure the organizations are shut down, and that individuals who bought diplomas from them receive restitution, the attorney said.

A version of this news article first appeared in the Digital Education blog.