In a nutshell, YES, that is what they did. They were collecting large sums of Student loan money upfront (up to 2 days before they shut down). They were spending this money not on training but on financing their airline they were trying to start. The Bank (Key bank) got suspicious and stopped sending them more money and the whole (PONZI SCHEME) came crashing down. These guys then tried to blame the bank and claimed to be helping the screwed over students... ABSOLUTLY not true, like I've said I knew a couple of the people screwed and by the way they called me 2 days before they shut the doors to sign my contract , so I know first hand they were out to rip people off to the bitter end. I got very lucky that I didnt make it in due to a work conflict that day. Funny how they tried to pressure me when I said I couldnt make it in that day, they threatened me to lose my loan aproval if I didnt sign, luckily it turned me off enough to think twice about them, and then two days later BAM. I will always consider myself very lucky.