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NYLAG Seeks Relief for Students in For-Profit College Bankruptcy

Flores v. Technical Career Institutes, Inc.

Technical Career Institutes, Inc. (TCI), a defunct for-profit college, shut down and filed bankruptcy in the Fall of 2017. Before it did, TCI faced increasing financial distress. It had stopped paying its employees’ salaries and benefits and stopped paying its rent. Less than two weeks before it closed, TCI told students that they should register for Fall 2017 classes “as soon as possible.” Based on this and other statements, many students promptly went to TCI’s offices to register for classes and pay tuition and fees. TCI’s representatives accepted these payments and provided students with schedules of their classes. After pocketing the students’ payments for the Fall 2017 semester, however, the school closed and then filed for bankruptcy. Named Plaintiffs David Flores, Jenny Gonzalez, and Armando Pardo are former TCI students who are creditors of TCI’s estate, because they paid money to TCI shortly before it closed for Fall 2017 classes that never happened and did not receive a refund. NYLAG brought this case on behalf of them and other students in a similar position

If you are a former TCI student, call our case hotline at 212-659-6166, or email us at fpsp@nylag.org.

More Information:

Name: Flores v. Technical Career Institutes, Inc.

Dkt. #: Adv. Proceeding No. 18-01554 (Bankr. S.D.N.Y.)

Judge: Hon. Mary Kay Vyskocil

Co-Counsel: Milbank, LLP

Status: Settlement Pending Final Approval

Claims:

Fraudulent inducement, fraud, fraudulent concealment, breach of contract, unjust enrichment, negligent misrepresentation, and N.Y. G.B.L. § 349

Highlights:

  • Plaintiffs filed the Complaint in June 2018
  • Plaintiffs agreed on a settlement with the trustee of TCI’s estate
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