Franklin Circuit Court orders National College to pay $126,000 fine in subpoena case

December 4, 2013 

FRANKFORT — Franklin Circuit Court ordered National College on Wednesday to pay a $1,000-a-day fine from July 1 to the present for failing to respond to a subpoena from Attorney General Jack Conway in his investigation of some for-profit colleges.

As of Wednesday, that amounts to $126,000.

In addition to the penalty, the court ordered National's attorneys to pay $10,000 to the attorney general's office after the court determined that National College has "repeatedly abused the legal system to obstruct a valid investigation by the attorney general."

National College had no immediate comment.

Conway said he hopes National College "will stop the games, turn over all of the documents requested and pay.

"If National has nothing to hide, the time is now to comply with the court order."

The attorney general issued a subpoena to National College in December 2010.

National refused to respond to the subpoena and filed suit to block the attorney general's investigation.

In March 2011, a Franklin Circuit Court ruling found that Conway's subpoena was reasonable and supported by valid concerns under the Consumer Protection Act, and that Conway was lawfully acting in the public interest.

National College appealed that decision to both the Court of Appeals and the Kentucky Supreme Court, but the appeals were denied.

In a separate action in September 2011, Conway filed suit against National College in Fayette Circuit Court, alleging that National violated the Kentucky Consumer Protection Act by posting false job placement rates for National graduates on its website.

That litigation is pending.

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