Ep 8. The Case Against Globe U; The Case of the 100 Million Dollar Scam

Whistleblower is a docuseries that follows the journey of those who dare to speak up against fraud, corruption, and criminal activities inside corporations, government agencies, and other institutions. In season 1 episode 8, titled "The Case Against Globe U; The Case of the 100 Million Dollar Scam," the show delves into the shocking story of a for-profit college that cheated students out of millions.

Globe University and Minnesota School of Business (MSB) were two schools owned by Terry and Ronal W. Touchatt in Minnesota. They offered degrees in business, health sciences, law enforcement, and other fields. However, according to former employees and students turned whistleblowers, the schools were running a massive scam that exploited vulnerable students, defrauded the government, and violated numerous laws.

The episode starts with a brief introduction to the background of the case. Then, the whistleblowers tell their stories of how they discovered the wrongdoing and what they did to expose it. One of them is Heidi Weber, a former admissions representative at MSB, who noticed that the management was pressuring her and her colleagues to recruit as many students as possible, even if they were not qualified or interested in the courses.

Another whistleblower is Deanna Williams, a former dean at the schools, who was fired after she tried to raise concerns about the lack of academic standards, the unqualified instructors, and the inflated graduation and job placement rates that the schools advertised to attract students. Williams filed a wrongful-termination lawsuit against the schools, which led to an investigation by the Minnesota Attorney General's Office.

The episode then shows how the investigators uncovered a shocking web of lies and fraud that implicated the Touchatts and their accomplices. The schools were accused of enrolling thousands of students who were ineligible for federal financial aid due to their low income, previous convictions, or false documentation. To overcome these hurdles, the schools used shady tactics such as fake high school diplomas, bogus GED scores, and identity theft. The schools also lured students into taking expensive loans that they could never repay, by promising them jobs that did not exist or were not relevant to their degrees.

The investigation revealed that the Touchatts and their family members were profiting from the fraud, by channeling the tuition and loan money to their personal accounts, or using it to buy luxury cars, boats, and vacations. The schools failed to provide the proper education, resources, and support that the students needed to succeed, leading to a high dropout rate, transfer rate, and default rate on the loans. The schools also violated the accreditation and licensing requirements of their programs, which affected the reputation and value of the degrees earned by the students.

The repercussions of the scam were devastating for the students, many of whom ended up with massive debts, ruined credit scores, and worthless degrees. Some of the students filed lawsuits against the schools, seeking compensation for the damages they suffered. The whistleblowers, too, faced retaliation and intimidation from the Touchatts and their allies, who tried to silence them and discredit their claims. However, with the help of the Attorney General's Office and the media, the whistleblowers managed to bring the case to light and hold the schools accountable for their actions.

In the end, the episode shows the aftermath of the case, including the closing of the schools, the settlement of the lawsuits, and the criminal charges and convictions against the Touchatts and other executives. The whistleblowers reflect on the lessons they learned from their experience and the importance of whistleblowing as a way to protect the public from harm and hold the powerful accountable. The episode ends with a call to action for viewers to report any fraud or abuse they witness and to support the whistleblowers who risk their lives and careers for the sake of justice.