A class action lawsuit has been filed against the private law school's administration alleging mismanagement. The lawsuit was filed in US Federal Court and claims the American Justice School's top two administrators have engaged in criminal activity that includes racketeering, conspiracy and abuse of their offices to enrich themselves at the expense of the students.
The class action claims Paul Hendrick, the school's founder, dean, president and majority stockholder, and Jarrod Turner, assistant dean and minority stockholder, worked together to delay distribution of student loans for living expenses so they could invest the funds and earn interest. It also claims they applied for student loans up to $20,000 without the student's knowledge.
The school was opened in 2005 and has about 200 students. The school applied for accreditation by the American Bar Association over the summer but was denied.
The suit seeks $120 million in damages as well as a restraining order to prevent the school from filing bankruptcy, a full accounting of financial records, and other action to protect students.
