Court Rules
All enforcement actions
Enforcement ActionHigh Risk

CT AG Tong Sues Stone Academy for Deceptive Nursing Program

Stone Academy, Paier College of Art, Joseph BierbaumJuly 13, 2023Connecticut Attorney General

Summary

Connecticut Attorney General William Tong sued Stone Academy, its owner Joseph Bierbaum, and Paier College of Art for violating the Connecticut Unfair Trade Practices Act by deceiving students about the nursing program's quality, clinical hours, and faculty qualifications while diverting funds to other businesses. The lawsuit seeks millions in civil penalties, restitution for students, disgorgement of profits, appointment of a receiver, and attachment of assets including Bierbaum's mansion.

Remedy

The state is seeking civil penalties of up to $5,000 per violation (totaling millions), restitution for affected students, disgorgement of all revenues and profits, appointment of a receiver for Stone Academy, and attachment of defendants' assets including Bierbaum's Rocky Hill mansion.

Monetary PenaltyConsumer RefundsInjunction

Contract Impact

In-house legal teams should review all student-facing agreements, particularly enrollment contracts and program descriptions, for clauses guaranteeing program quality, clinical placement hours, and faculty credentials. Vendor and clinical site agreements should be examined for commitments on training resources and supervision. Intercompany or management agreements between Stone Academy, Paier College, and Joseph Bierbaum must be scrutinized for any provisions allowing or restricting the transfer of funds, cross-subsidization, or shared services. Necessary changes include inserting clear, measurable performance standards with audit rights, explicit prohibitions on diverting student tuition to affiliated entities without transparent justification, and mandatory disclosures regarding program accreditation status and actual clinical placement availability. Refund policies should be aligned with the failure to deliver promised educational outcomes.

Contract Search Terms

program quality representationsclinical hour guaranteesfaculty qualification standardsfunds allocation restrictionsaffiliate transaction clausesstudent enrollment agreementeducational outcome guaranteestuition fee provisionsrefund policyprogram accreditation status

Laws Cited

Connecticut Unfair Trade Practices Act

Violation Types

Entity Details

Entity

Stone Academy, Paier College of Art, Joseph Bierbaum

Also known as: Stone Academy

Industry

Education

Official Sources

Related Enforcement Actions

CT

National Highway Traffic Safety Administration

Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.

CT

U.S. Environmental Protection Agency

Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.

CT

Sandoz Inc. and Fougera Pharmaceuticals Inc.

$400.0M

Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.

CT

U.S. Department of Homeland Security

Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.

CT

NextEra Energy and Dominion Energy

Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.

CT

Unspecified home improvement contractors

Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.