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TRANSCRIPT
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SUPERIOR COURT OF CALIFORNIA
COUNTY OF SAN FRANCISCO
Document Scanning Lead Sheet Jun-03-2011 03:41 pm
Case Number: CGC-11-511469
Filing Date: Jun-03-2011 02:07
Juke Box: 001 Image: 03231737
COMPLAINT
KARINA ABARCA et al VS. CALIFORNIA CULINARY ACADEMY INC., A et al
001 C03231737
Instructions: Please place this sheet on top of the document to be scanned.
SUMMONS (CITACION JUDICIAL)
NOTICE TO DEFENDANT: (AVISO AL DEMANDADO):
CALIFORNIA CULINARY ACADEMY, INC., a California corporation (Continued on Attachment)
YOU ARE BEING SUED BY PLAINTIFF: (LO ESTA DEMANDANDO EL DEMANDANTE):
KARINA ABARCA; JOSE AGUILERA; JOSHUA AIKEN; LASHANNON ALEXANDER (Continued on Attachment)
SUM-100 FOR COURT USE ONLY
(SOLO PARA USO DE LA CORTE)
NOTICEI You have been sued. The court may decide against you without your being heard unless you respond within 30 days. Read the information below.
You have 30 CALENDAR DAYS after this summons and legal papers are served on you to file a written response at this court and have a copy served on the plaintiff. A letter or phone call will not protect you. Your written response must be in proper legal form if you want the court to hear your case. There may be a court form that you can use for your response. You can find these court forms and more information at the California Courts Online Self-Help Center (www.courlinfo.ca.govlselfhelp). your county law library, or the courthouse nearest you. If you cannot pay the filing fee, ask the court clerk for a fee waiver form. If you do not file your response on time, you may lose the case by default, and your wages, money, and property may be taken without further warning from the court.
There are other legal requirements. You may want to call an attorney right away. If you do not know an attorney, you may want to call an attorney referral service. If you cannot afford an attorney, you may be eligible for free legal services from a nonprofit legal services program. You can locate these nonprofit groups at the California Legal Services Web site (www.lawhelpcalifornia.org), the California Courts Online Self-Help Center (www.courlinfo.ca.govlselfhelp). or by contacting your local court or county bar association. NOTE: The court has a statutory lien for waived fees and costs on any settlement or arbitration award of $10,000 or more in a civil case. The court's lien must be paid before the court will dismiss the case. JAV/SO! Lo han demandado. Si no responde dentro de 30 dias, la corle puede decidir en su contra sin escuchar su version. Lea la informaciOn a continua cion.
Tiene 30 DfAS DE CALENDARIO despues de que Ie entreguen esta citacion y papeles legales para presentar una respuesta por escrito en esta corle y hacer que se entregue una copia al demandante. Una carla 0 una lIamada telefonica no 10 protegen. Su respuesta por escrito tiene que estar en formato legal correcto si desea que procesen su caso en la corle. Es posfble que haya un formulano que usted pueda usar para su respuesta. Puede encontrar estos formularios de la corle y mas informacion en el Centro de Ayuda de las Corles de California (www.sucorte.ca.gov). en la biblioteca de leyes de su condado 0 en la corle que Ie quede mas cerca. Si no puede pagar la cuota de presentacion, pida al secretario de la corle que Ie de un formulario de exencion de pago de cuotas. Sf no presenta su respuesta a tiempo, puede perder el caso por incumplimiento y la corle Ie podra quitar su sueldo, dinero y bienes sin mas adverlencia.
Hay otros requisitos legales. Es recomendable que lIame a un abogado inmediatamente. Si no conoce a un abogado, puede lIamar a un servicio de remision a abogados. Si no puede pagar a un abogado, es posible que cumpla con los requisitos para obtener seNicios legales gratuitos de un programa de servicios legales sin fines de lucro. Puede encontrar estos grupos sin fines de lucro en el sitio web de California Legal Services, (www.lawhelpcalifornia.org), en el Centro de Ayuda de las Corles de California, (www.sucorte.ca.gov) 0 poniendose en contacto con la corle 0 el colegio de abogados locales. A V/SO: Par ley, la corle tiene derecho a reclamar las cuotas y los costas exentos por irnponer un gravamen sobre cualquier recuperacion de $10,000 0 mas de valor recibida mediante un acuerdo a una concesion de arbitraje en un caso de derecho civil. Tiene que pagar el gravamen de la corle antes de que la corle pueda desechar el caso.
The name and address of the court is: (EI nombre y direccion de la corte es):
Superior Court of the State of California San Francisco 400 McAllister Street, San Francisco, CA 94102
The name, address, and telephone number of plaintiffs attorney, or plaintiff without an attorney, is: (EI nombre, la direccion y el niJmero de telMono del abogado del demandante, 0 del demandante que no tiene abogado, es):
Gallo & Associates 1101 Fifth Avenue, Suite 205, San Rafael, CA 94901 (310) 338-1114 ~. The Mills Law Firm, 880 Las Gallinas Avenue, Suite 2, San Rafael, CA 94903 (415) 455-312r? ,1/Cfv\ DATE: June 3, 2011 r' ERK OF THE COURT Clerk, by R NAn J I ~ Ii , Deputy (Fecha) ,'.... (Secretario) L (AdJunto)
(For proof of service of this summons, use Proof of Service of Summons (form POS-01 0).) (Para prueba de entrega de esta citation use el formulario Proof of Service of Summons, (POS-010)).
[SEAL]
Form Adopted for Mandatory Use JudICial CounCil of California SUM 100 [Rev July 1, 2009]
NOTICE TO THE PERSON SERVED: You are served
1. 0 as an individual defendant. 2. D as the person sued under the fictitious name of (specify):
3. D on behalf of (specify):
under: D D D D
CCP 416.10 (corporation)
CCP 416,20 (defunct corporation)
CCP 416.40 (association or partnership)
other (specify): 4. D by personal delivery on (date):
SUMMONS
D D D
CCP 416.60 (minor)
CCP 416.70 (conservatee)
CCP 416.90 (authorized person)
Page 1 of 1
Code of Civil Procedure §§ 412 20, 465 www courtmfo.ca gov
ATTACHMENT TO SUMMONS
PETITIONER/PLAINTIFF: KARINA ABARCA, et al. CASE NUMBER:
RESPONDENT/DEFENDANT: CALIFORNIA CULINARY ACADEMY, et al.
NOTICE TO DEFENDANT:
(CONTINUED)
CAREER EDUCATION CORPORATION, a Delaware corporation; SLM CORPORATION, a Delaware
corporation; SALLIE MAE, INC., a Delaware corporation; SLM EDUCATION CREDIT FINANCE
CORPORATION, a Delaware corporation; JPMORGAN CHASE BANK, N.A., a national association; WELLS
FARGO BANK, N.A., a national association; WELLS FARGO & COMPANY, a Delaware corporation; US
BANCORP, N.A., a national association; HICA EDUCATION LOAN CORPORATION, a South Dakota
corporation; SUNTRUST BANKS, INC., a Georgia corporation; PRIVATE ACADEMIC LOANS, LLC, a
Delaware limited liability company; THE EDUCATION RESOURCES INSTITUTE, INC.; and DOES 1 to 1,000
inclusive,
YOU ARE BEING SUED BY PLAINTIFF:
(CONTINUED)
MARCO ALVARADO; RHEMA ANDREWS; JANINE BARTOLOTTI; THREASA BELMARES; ANTHONY BELZER;
ROBERT BOOTH; BRANDON BOWMER; KEITH BRAMWELL; RYAN BRIAR; PETER BROOKENS; BRIAN
BUENO; AARON CALLAHAN; ANDREW CARROLL; STACIE CASTILLO; ZACHARY CHAMPLIN; JACLYNN
CHAVEZ; JEREMY CLABOUGH; JOSH CLEVELAND; JULIE (CONTRERAS) PEREZ; CHAD COOK; BRETT
COOPER; JEFFREY CROSS; STEVEN DELATORRE; IAN DELPH; ANTHONY DILILLO; LISA DUNCAN; ZACHARY
FARNES; MIGUEL GARCIA; ANDREW GLASSMACHER; JESELL GONZALES; EVAN GOURD; CHARLENE
GROSS; SEAN GUDE; JIMMY HALVERSON; STEFANIE HOCKETT; ANDREW HUESCA; DENISE IRONS; RANDY
JACKSON; SANDRA JACOBS; MATTHEW JARVIS; JUSTAN JOHNSON; ROSS JOHNSON; SHILOH JONES;
THERESA JOYCE; THOMAS KAROPOULOS; SHELDON KOHN; ADAM KONFRST; DON LABARBERA; JEAN
YVES LE DU; TRUNG LE; LEVI LEWIS; ALAN LIVINGSTON; RACHEL LUNZAGA; CASEY LUTZ; JAMES LYON;
JEFFREY MACHA; BRITT MAGNUSON; CHRISTIAN MANCILLA; JASON MARMOR; JASON MARSHMAN;
ASHLEY COFFEY MARTIN; MARC MARTIN; ALICIA MCCLAIN; CORRIN MCKELLIPS; CHADWICK
MCWILLIAMS; MICHAEL MOORE; JENNIFER MORGAN; JOHN MOSELEY; KATHERINE MUNSON; SERGIO
NAVARRETE; KEVIN NORTON; KRISTINA OPAT; RUTH PACHECO; JENNIFER POBLETE; AMY PORTELLO;
D'ANTONIO PUREFOY; MARCUS RED; PAUL ROBERTS; LAUREN ROOT; CHRISTOPHER ROPER; THOMAS
ROSCOE; JORDAN RUSSELL; MASON SAGER; SCOTT SALAZAR; ALEJANDRO SANCHEZ; EDWARD SANCHO
BONET; JEREMIAH SHARLOW; MATTHEW SHARPE; APRIL SLAUGHTER; PETER SLAVENKOV; JOHN ANTON
SMITH; MICHAEL ST. LAWRENCE; THERESA (STEWART) STAPLETON; SEAN SULLIVAN; BROOKE SWOPES;
TERE TANGRE TAKEMOTO; DIEM (DOONAN) TANG; CHRISTOPHER TAYLOR; STERLING TERAN; JASON
TURNER; GABRIEL URIBE; SHERYL UY; SADIE VELASQUEZ; DAVID VONGKHOTSOMBATH; ADA SILVER
WARFEL; BYRAM WILLIAMS; TARISA WILLIAMSON; CHELSEA WONG; SAVANNA YBARRA; ANTHONY YEE;
BRIAN YORK,
CM-010 ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address):
r-Robert W, Mills (62154) FOR COURT USE ONL Y
The Mills Law Firm 880 Las Gallinas A venue, Suite Two San Rafael, CA 94903 F I L I J>
TELEPHONE NO.: 415-455-1326 FAX NO.: 415-455-1327 ATTORNEY FOR (Name): Plaintiffs Supenot Court of a I omi ..
t--'-':..c..:=."'-'=c...:....:::.:..:l:==-.:::....::..:===--___ ----,:::--__ ----,,----__________ ----j COllnty of San francisco SUPERIOR COURT OF CALIFORNIA, COUNTY OF San Francisco
STREET ADDRESS: 400 McAllister Street MAILING ADDRESS: JUN .,. 3 2011
f-_C_ITY...!::~:::!.!D~~I:~~~OD~:'_: S_a_n_F_r_a_n_ci_s_CO_,_C_A_9_4_1_02 ___________ ----f1'It:CL.~.'r)~~ .. _~.H AlE CQ~RT CASE NAME: ",-., .,.AI~ ABARCA et al v. CALIFORNIA CULINARY ACADEMY, INC., et al ~i'iiJtyglerk
C I C D ·· CCAS_E
NUM1BEIlj _ 5 1 1 4 6 9 omp ex ase eSlgnatlon C G I D Counter D Joinder I-----------------j
CIVIL CASE COVER SHEET [ZJ Unlimited D Limited
(Amount (Amount demanded demanded is Filed with first appearance by defendant JUDGE:
exceeds $25,000) $25,000 or less) (Cal. Rules of Court, rule 3.402) DEPT:
Items 1-6 below must be completed (see instructions on page 2). 1, Check one box below for the case type that best describes this case:
Auto Tort Contract
D Auto (22) D Breach of contracVwarranty (06)
D Uninsured motorist (46) D Rule 3.740 collections (09)
Other PI/PDIWD (Personallnjury/Property D Other collections (09)
DamagelWrongful Death) Tort D Insurance coverage (18)
D Asbestos (04) D Other contract (37) D Product liability (24)
D Medical malpractice (4S)
D Other PI/PDIWD (23)
Non-PIIPDIWD (Other) Tort
D Business torVunfair business practice (07)
D Civil rights (08)
D Defamation (13)
W Fraud (16)
D Intellectual property (19)
D Professional negligence (2S)
D Other non-PI/PDIWD tort (3S)
IEmjloyment Wrongful termination (36)
D Other employment(1S)
Real Property
D Eminent domainllnverse condemnation (14)
D Wrongful eviction (33)
D Other real property (26)
Unlawful Detainer
D Commercial (31)
D Residential (32)
D Drugs (38)
Judicial Review
D Asset forfeiture (OS)
D Petition re: arbitration award (11 )
D Writ of mandate (02)
D Other judicial review (39)
Provisionally Complex Civil Litigation (Cal. Rules of Court, rules 3.400-3.403)
D AntitrusVTrade regulation (03)
D Construction defect (10)
D Mass tort (40)
D Securities litigation (28)
D EnvironmentallToxic tort (30)
D Insurance coverage claims arising from the above listed provisionally complex case types (41)
Enforcement of Judgment
D Enforcement of judgment (20)
Miscellaneous Civil Complaint
D RICO(27)
D Other complaint (not specified above) (42)
Miscellaneous Civil Petition
D Partnership and corporate governance (21)
D Other petition (not specified above) (43)
2. This case W is U is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the factors requiring exceptional judicial management:
a. [ZJ Large number of separately represented parties
b. [Z] Extensive motion practice raising difficult or novel issues that will be time-consuming to resolve
c, W Substantial amount of documentary evidence
3, Remedies sought (check all that apply): a.W monetary
4. Number of causes of action (specify): Six 5. This case D is [ZJ is not a class action suit.
d. [ZJ Large number of witnesses
e. [ZJ Coordination with related actions pending in one or more courts in other counties, states, or countries, or in a federal court
f. D Substantial post judgment judicial supervision
b. W nonmonetary; declaratory or injunctive relief c. [ZJ punitive
6. If there are any known related cases, file and serve a notice of related case, (",.,.',,,,,,,.,,
Date: June 3, 2011 Joshua D. Boxer
(TYPE OR PRINT NAME)
NOTICE • Plaintiff must file this cover sheet with the first paper filed in the action or p cee g (except small claims cases or cases filed
under the Probate Code, Family Code, or Welfare and Institutions Code). (Ca, ules of Court, rule 3.220.) Failure to file may result in sanctions.
• File this cover sheet in addition to any cover sheet required by local court rule. • If this case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all
other parties to the action or proceeding . • Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only.
p, 1012
Form Adopted for Mandatory Use Judicial Council of Califomia CM.Q10 [Rev. July 1,2007]
CIVIL CASE COVER SHEET Cal. Rules of Court, rules 2.30, 3.220, 3.400-3.403, 3.740; Cal. Standards of Judicial Administration, std. 3.10
www.CXJurtinfo.ca.gov
American LegalNet, Inc. W'W'W. Forms Workflow.com
1 Ray E. Gallo (SBN 158903) Dominic Valerian (SBN 240001)
2 Patrick V. Chesney (SBN 267587) GALLO & ASSOCIATES
3 1101 Fifth Avenue, Suite 205 San Rafael, CA 94901
4 Phone: 310.338.1114 Facsimile: 310.338.1199
6 Robert W. Mills, Esq. (SBN 62154) Joshua D. Boxer (SBN 226712)
7 The Mills Law Firm 880 Las Gallinas Avenue, Suite Two
8 San Rafael, CA 94903 Phone: 415.455.1326
9 Fax: 415.455.1327 [email protected]
10
11 Counsel for Plaintiffs
SUMMONS ISSUED FILED,
San Francisco Cour"! C::llntlrlOr Court
12 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO
13 KARINA ABARCA; JOSE AGUILERA;
14 JOSHUA AIKEN; LASHANNON ALEXANDER; MARCO ALVARADO;
15 RHEMAANDREWS; JANINE BARTOLOTTI; THREASA BELMARES; ANTHONY BELZER;
16 ROBERT BOOTH; BRANDON BOWMER; KEITH BRAMWELL; RYAN BRIAR; PETER
17 BROOKENS; BRIAN BUENO; AARON CALLAHAN; ANDREW CARROLL; STACIE
18 CASTILLO; ZACHARY CHAMPLIN; JACL YNN CHAVEZ; JEREMY CLABOUGH;
19 JOSH CLEVELAND; JULIE (CONTRERAS) PEREZ; CHAD COOK; BRETT COOPER;
20 JEFFREY CROSS; STEVEN DELATORRE; IAN DELPH; ANTHONY DILILLO; LISA
21 DUNCAN; ZACHARY FARNES; MIGUEL GARCIA; ANDREW GLASSMACHER;
22 JESELL GONZALES; EVAN GOURD; CHARLENE GROSS; SEAN GUDE; JIMMY
23 HALVERSON; STEFANIE HOCKETT; ANDREW HUESCA; DENISE IRONS; RANDY
24 JACKSON; SANDRA JACOBS; MATTHEW JARVIS; JUSTAN JOHNSON; ROSS
25 JOHNSON; SHILOH JONES; THERESA JOYCE; THOMAS KAROPOULOS; SHELDON
26 KOHN; ADAM KONFRST; DON LABARBERA; JEAN-YVES LE DU; TRUNG
27 LE; LEVI LEWIS; ALAN LIVINGSTON;
Case Ne' G C - 1 1 - 5 1 1 4 6 9 COMPLAINT FOR DAMAGES, RESTITUTION, AND INJUNCTIVE RELIEF FOR:
1. FRAUD
2. VIOLATION OF THE UNFAIR COMPETITION LAW
3. VIOLATION OF THE CONSUMERS LEGAL REMEDIES ACT
4. VIOLATION OF THE PRIVATE POSTSECONDARY AND VOCATIONAL EDUCATION REFORM ACT OF 1989
5. BREACH OF CONTRACT
6. DECLARATORY RELIEF
DEMAND FOR JURY TRIAL
COMPLAINT
1 RACHEL LUNZAGA; CASEY LUTZ; JAMES LYON; JEFFREY MACHA; BRITT
2 MAGNUSON; CHRISTIAN MANCILLA; JASON MARMOR; JASON MARSHMAN;
3 ASHLEY COFFEY MARTIN; MARC MARTIN; ALICIA MCCLAIN; CORRIN MCKELLIPS;
4 CHADWICK MCWILLIAMS; MICHAEL MOORE; JENNIFER MORGAN; JOHN
5 MOSELEY; KATHERINE MUNSON; SERGIO NAVARRETE; KEVIN NORTON; KRISTINA
6 OPAT; RUTH PACHECO; JENNIFER POBLETE; AMY PORTELLO; D'ANTONIO
7 PUREFOY; MARCUS RED; PAUL ROBERTS; LAUREN ROOT; CHRISTOPHER ROPER;
8 THOMAS ROSCOE; JORDAN RUSSELL; MASON SAGER; SCOTT SALAZAR;
9 ALEJANDRO SANCHEZ; EDWARD SANCHO-BONET; JEREMIAH SHARLOW;
10 MATTHEW SHARPE; APRIL SLAUGHTER; PETER SLA VENKOV; JOHN ANTON SMITH;
11 MICHAEL ST. LAWRENCE; THERESA (STEWART) STAPLETON; SEAN SULLIVAN;
12 BROOKE SWOPES; TERE TANGRE TAKEMOTO; DIEM (DOONAN) TANG;
13 CHRISTOPHER TAYLOR; STERLING TERAN; JASON TURNER; GABRIEL URIBE;
14 SHERYL UY; SADIE VELASQUEZ; DAVID VONGKHOTSOMBATH; ADA SILVER
15 WARFEL; BYRAM WILLIAMS; TARISA WILLIAMSON; CHELSEA WONG; SA VANNA
16 YBARRA; ANTHONY YEE; BRIAN YORK,
17 Plaintiffs,
vs.
18 CALIFORNIA CULINARY ACADEMY, INC.,
19 a California corporation; CAREER EDUCATION CORPORATION, a Delaware corporation; SLM
20 CORPORATION, a Delaware corporation; SALLIE MAE, INC., a Delaware corporation;
21 SLM EDUCATION CREDIT FINANCE CORPORATION, a Delaware corporation;
22 JPMORGAN CHASE BANK, N.A., a national association; WELLS FARGO BANK, N .A., a
23 national association; WELLS FARGO & COMPANY, a Delaware corporation; US
24 BANCORP, N.A., a national association; HICA
25 EDUCATION LOAN CORPORATION, a South Dakota corporation; SUNTRUST BANKS, INC.,
26 a Georgia corporation; PRIV ATE ACADEMIC LOANS, LLC, a Delaware limited liability
27 com an ; THE EDUCATION RESOURCES
1 rnMPT .A TNT
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INSTITUTE, INC.; and DOES 1 to 1,000 inclusive,
Defendants.
2 r()MPT .A TNT
1 Plaintiffs' allegations are based on the investigation of counsel, including but not
2 limited to reviews of advertising and marketing material, SEC filings, other publicly available
3 information, interviews of former employees and former students, review of non-confidential
4 documents produced by Defendants, and review of material obtained through discovery in related
5 litigation, and are thus made by Plaintiffs on information and belief, except as to the individual
6 actions of Plaintiffs, as to which Plaintiffs have personal knowledge.
7 The Parties
8 1. Plaintiffs are current or former students of the California Culinary Academy. All
9 Plaintiffs are putative class members in Alison Amador, et at. v. California Culinary Academy, et
10 ai., San Francisco County Superior Court Case No. CGC-07046770, Jennifer Adams, et ai. v.
11 California Culinary Academy, Inc., et al., San Francisco County Superior Court Case No. CGC-
12 08-473866, or both, based on the proposed class definitions set forth in the operative complaints in
13 those actions. A proposed class action settlement is pending in the Amador case, into which the
14 Adams action has been conditionally consolidated for purposes of the proposed settlement.
15 Plaintiffs have each either been excluded from the proposed settlement class or wish to be
16 excluded from it, and have timely informed the settlement administrator, either personally or
17 through their attorneys.
18 2. Plaintiffs are listed in alphabetical order in the appendix hereto. That appendix is
19 incorporated into this Complaint as if set forth fully here. It identifies each Plaintiff s Note
20 holder(s) ("Holder") (as more fully described below) to the extent known. Where it does not
21 identify each Plaitiffs Note holder, Plaintiffs will amend this Complaint to identify said
22 Holder(s).
23 3. Defendant California Culinary Academy, Inc. ("CCA") is a California corporation
24 that operates a for-profit culinary school under the same name in the City and County of San
25 Francisco. CCA also currently does and at all relevant times did business as Le Cordon Bleu
26 under a license to use that name. It is wholly owned and operated by Defendant Career Education
27 Corporation.
3 COMPLAINT
1 4. Defendant Career Education Corporation ("CEC") is a Delaware corporation that
2 does business in the City and County of San Francisco by and through its wholly owned and
3 controlled subsidiary CCA.
4 5. Plaintiffs are infonned and believe that CEC exercises complete dominion and
5 control over each and all of its subsidiaries, including CCA, enjoys the full benefit of all moneys
6 and profits earned by these subsidiaries, and benefits in other direct and indirect ways from and
7 dictates and causes all of the wrongful actions of CCA alleged in this complaint and, as a
8 consequence, is in possession of moneys rightfully belonging to Plaintiffs. Plaintiffs are infonned
9 and believe that CEC develops and oversees the implementation of all policies and procedures at
IOCCA, including without limitation policies and procedures concerning sales and marketing
11 (admissions) practices, financial aid practices, curriculum, and job placement. Defendant CCA
12 then implements and carries out the policies and procedures developed by CEC.
13 6. CEC, CCA, and Does 1-100 are collectively referred to herein as the "School
14 Defendants."
15 7. Defendant SLM Corporation is a Delaware corporation that maintains its
16 headquarters in Reston, Virginia. At all relevant times SLM Corporation was doing business in
17 California and in this county and with California citizens.
18 8. Defendant Sallie Mae, Inc. is a Delaware corporation that maintains its
19 headquarters in Reston, Virginia. At all relevant times Sallie Mae, Inc. was doing business in
20 California and in this county and with California citizens.
21 9. Defendant SLM Education Credit Finance Corporation is a Delaware corporation
22 that maintains its headquarters in Reston, Virginia. At all relevant times SLM Education Credit
23 Finance Corporation was doing business in California and in this county and with California
24 citizens.
25 10. Defendants SLM Corporation; Sallie Mae, Inc.; and Sallie Mae Education Credit
26 Finance Corporation are collectively referred to herein as "Sallie Mae."
27
4 COMPLAINT
1 11. Defendant JPMorgan Chase Bank, N.A. is a national association that maintains its
2 headquarters in New York, New York. At all relevant times JPMorgan Chase Bank, N.A. was
3 doing business in California and in this county and with California citizens.
4 12. Defendant Wells Fargo Bank, N.A., is a national association that maintains its
5 headquarters in Sioux City, South Dakota. At all relevant times Wells Fargo Bank, N.A. was
6 doing business in California and in this county and with California citizens.
7 13. Defendant Wells Fargo & Company is a Delaware corporation that maintains its
8 headquarters in San Francisco. At all relevant times Wells Fargo & Company was doing business
9 in California and in this county and with California citizens.
10 14. Defendant US Bancorp, N.A., is a national association that maintains its
11 headquarters in Minneapolis, Minnesota. At all relevant times US Bancorp, N.A. was doing
12 business in California and in this county and with California citizens.
13 15. Defendant HICA Education Loan Corporation is a South Dakota corporation that
14 maintains its headquarters in Sioux Falls, South Dakota. At all relevant times HICA Education
15 Loan Corporation was doing business in California and in this county and with California citizens.
16 16. Defendant Suntrust Banks, Inc. is a Georgia corporation that maintains its
17 headquarters in Atlanta, Georgia. At all relevant times Suntrust Banks, Inc. was doing business in
18 California and in this county and with California citizens.
19 17. Defendant Private Academic Loans, LLC is a Delaware limited liability
20 corporation that maintains its headquarters in Greenwood Village, Colorado. At all relevant times
21 Private Academic Loans, LLC was doing business in California and in this county and with
22 California citizens.
23 18. Defendant The Education Resources Institute, Inc. is a Massachusetts corporation
24 that maintains its headquarters in Boston Massachusetts. At all relevant times The Education
25 Resources Institute, Inc. was doing business in California and in this county and with California
26 citizens.
27 19. Defendants CEC; CCA; Sallie Mae; JPMorgan Chase Bank, N.A.; Wells Fargo
5 COMPLAINT
1 Bank, N.A.; Wells Fargo & Company; US Bancorp, N.A.; HICA Education Loan Corporation;
2 Suntrust Banks, Inc.; Private Academic Loans, LLC; The Education Resources Institute, Inc.; and
3 Does 101-1,000,000 are collectively referred to herein as the "Lender Defendants."J
4 20. Each of DOES 1-100 is the agent, servant, partner, joint-venturer, co-venturer,
5 principal, director, officer, manager, employee, or shareholder of one or more of its co-defendants
6 who aided, abetted, controlled, and directed or conspired with and acted in furtherance of said
7 conspiracy with one or more of its co-defendants in performance of the acts and omissions
8 described below and for the fraudulent purposes described below.
9 21. Each of DOES 101-1,000,000 is either (1) the legal or beneficial holder ofa Note
10 (as used in this complaint, the term "Note(s)" is defined as a promissory note, loan agreement, or
11 other debt obligation entered into by any Plaintiff to finance the costs of enrolling in andlor
12 attending CCA), or (2) a former holder of a Note who has received payments on a Note from or
13 for the benefit of one or more Plaintiffs. As used hereinafter, Lender Defendants also means and
14 includes each of DOES 101-1,000,000.
15 22. Plaintiffs sue each of these Doe Defendants by these fictitious names because
16 Plaintiffs do not now know these Defendants' true names and capacities.
17 23. At all relevant times, the School Defendant and DOES 1-100 conspired with each
18 other Defendant to commit the wrongful acts set forth in each cause of action in this complaint
19 and, as a result, each of these Defendants is liable and responsible for the acts of each other
20 Defendant that acted wrongfully, whether or not each co-conspirator actually committed those
21 wrongful acts or only conspired with the other Defendants to have them committed.
22 Factual Summary of the Claims
23 24. The School Defendants aggressively marketed CCA to Plaintiffs through a pattern
24 of partial truths, misleading statements, significant omissions, assertions of fact that the School
25 Defendants had no reasonable ground for believing to be true, and outright lies, all of which were
26
27 1 CCA and CEC and/or their corporate affiliates also extended student loans to one or more Plaintiffs and are thus both Lender Defendants and School Defendants as defined herein.
6 COMPLAINT
1 designed to create, in the minds of Plaintiffs, the strong impression that they would be both
2 professionally and financially better off if they attended CCA. In fact, Plaintiffs received a degree
3 that is effectively worthless to them. Plaintiffs ended up, at best, with jobs that they could have
4 obtained without a CCA degree and, at worse, no job at all and a 15 month absence from the labor
5 market. Regardless, all Plaintiffs were consequently saddled with non-dischargeable student loans
6 that they cannot repay or service that spiral upward to create a condition of lifelong financial ruin
7 and indentured servitude to the Holders of their individual Notes. All of this was known to the
8 School Defendants when they solicited Plaintiffs, but was not disclosed.
9 25. CCA offers various hospitality-related education programs to its students.
10 Plaintiffs enrolled in either the 15 month, approximately $40,000 to $50,000 Culinary Arts
11 Program (varying over the relevant timeframe); the 7 to 10 month, approximately $25,000 Baking
12 & Pastry Arts ("B&P") Program; 2 or the 11 month approximately $37,000 Hospitality and
13 Restaurant Management ("HRM") Program (collectively, the "Culinary Degree Programs" or
14 "Programs").
15 26. CCA induces prospective students to enroll in the Programs through an ongoing
16 fraudulent scheme (the "Fraud") comprised of an extensive marketing campaign that includes
17 television, radio, print, internet, and in-person recruitment. The in-person component of the Fraud
18 is carried out by the School Defendants' quota-driven salespeople on the phone, by mail, by email,
19 and in face-to-face meetings with prospective students.
20 Written Misrepresentations
21 27. Over the course of the Fraud, the School Defendants made the following written3
22 representations to Plaintiffs and thousands of other victims of the Fraud:
23
24
25
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28. The School Defendants represented that CCA's Culinary Arts and B&P Programs
lead to Chef positions. The School Defendants routinely made this representation in their
2 In or around 2008 the Baking & Pastry Arts Program became the Le Cordon Bleu Patisserie and Baking Program. Both these programs are referred to as the B&P Program throughout this Complaint. 3 As used here, the tenn "written" refers to all representations in a "writing" as defined by California Evidence Code § 250.
7
COMPLAINT
1 marketing materials, both implicitly and explicitly. Representative examples include, but are not
2 limited to, the following:
3 a. In a CCA video advertisement, a young Chef states: "Ever thought about
4 becoming a Chef, maybe even flirted with the idea of having your own
5 restaurant? Culinary school is a great place to learn everything from grilling a
6 porterhouse to turning a profit. And listen to this. Restaurant owners are
7 expected to sell over $400 billion in food this year. Now, that's a lot of cooking
8 for a lot of Chefs. Why don't you train to become one?"
9 b. In a CCA video advertisement, a young Chef states: "If you have a passion for
1 0 cooking, then why not look into a career as a Chef?" The Chef is interrupted by
11 a subordinate carrying an object who asks "Where do you want this, boss?"
12 The Chef turns to the camera and says "Boss. You could learn to love this."
13 c. In a CCA video advertisement, a young Chef states: "If baking breads, gourmet
14 pastries, and making chocolate truffles sounds more appealing than working a
15 regular job, you might want to think about training for a career as a pastry Chef
16 and earn a living based on your love for desserts."
17 d. In a CCA video advertisement, a young Chef states: "Why don't you look into
18 the California Culinary Academy where tomorrow's great Chefs of the world
19 are being trained? And one ofthose Chefs could be you."
20 e. In a CCA video advertisement, a young Chef states: "Imagine working as a
21 personal Chef, a pastry Chef, or a restaurant manager. With the right training,
22 you can."
23 f. In a CCA video advertisement, a young Chef states: "Here are three good
24 reasons why you should get off the couch and call the California Culinary
25 Academy: ... 2) They can help prepare you for an exciting career as a Chef,
26 pastry Chef, caterer, or more .... "
27
8 COMPLAINT
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g. A CCA print advertisement attached hereto as Exhibit 1 lists positions as
representative examples of job opportunities in culinary arts available to CCA
graduates. The list starts with "Executive Chef' and includes numerous other
high-level culinary industry positions and no entry level or low-wage positions.
h. A CCA print advertisement attached hereto as Exhibit 2 sent to high school
seniors states: "Imagine yourself as an executive chef at a trendy restaurant, a
pastry artist with your own bakery, or a personal chef to the stars. California
Culinary Academy can make it happen for you." (Emphasis in original.)
1. A CCA print advertisement attached hereto as Exhibit 3 states: "For a moment,
imagine yourself working as a chef in a fine restaurant, a popular resort,
aboard a cruise ship, or maybe even in your own establishment. California
Culinary Academy can help make it happen." (Emphasis in original.)
J. A page from CCA's School Catalog, attached hereto as Exhibit 4 states:
"VALUE AND AFFORDABILITY OF THE ACADEMY A culinary
education can open doors to a variety of exciting and rewarding career
opportunities. Become an executive chef; own your own restaurant; work at
prestigious hotels, spas, and aboard cruise ships; or even write for a food
magazine--the options are numerous."
k. A CCA print advertisement attached hereto as Exhibit 5 states: "LE CORDON
BLEU SCHOOLS NORTH AMERICA CAN PREPARE YOU FOR THE
PRESTIGOUS CULINARY CAREER YOU'VE ALWAYS WANTED.
TRAIN TO BE AN EXECUTIVE CHEF, SOUS CHEF, PASTRY ARTIST,
RESTAURANT OWNER OR FOOD AND BEVERAGE DIRECTOR."
1. A CCA print advertisement attached hereto as Exhibit 6 states: "the California
Culinary Academy offers aspiring professional chefs the perfect setting to
receive their culinary training. Rigorous and comprehensive, this accredited
9 COMPLAINT
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degree program prepares students for professional entry into all aspects of the
culinary profession."
m. The School Defendants' quota-driven salespeople showed prospective students
a flip chart containing a section called "ROAD TO YOUR CAREER", which is
attached hereto as Exhibit 7.4 The section begins: "JOB OR CAREER ...
THERE IS A BIG DIFFERENCE." It shows an overworked kitchen worker
and explains: "JOB[:] Little or No Security[,] Low Pay[,] Small Raises[,] Long
Hours[,] Few Opportunities[.]" The next page shows a Chef and states
"CAREER[:] Personal Professional Growth[,] Competitive Pay[,]
Advancement Opportunities[,] Challenging Work[,] Employee Benefits[.]"
n. A CCA internet advertisement, attached hereto as Exhibit 8, states: "If you have
a passion for food, enjoy working with other people and thrive on the
excitement of the culinary industry, you have come to the right place: The Top
Culinary School Directory. This site gives you access to renowned curricula
such as the prestigious Cordon Bleu Culinary Program, which can be your
ticket to becoming an executive chef.
-The culinary field can be quite lucrative - executive chefs earn an average
salary of$52,326 to $78,011 (according to Salary.com)
-It makes sense to get a culinary degree: The difference between a cook's salary
($24,000) and a beginning executive chefs salary ($58,000) is $34,000. That's
a difference of over 140% (according to Foodservice.com)"
The School Defendants represented that the HRM Program leads to managerial
24 positions. The School Defendants routinely made this representation in their marketing materials,
25
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27
4 The School Defendants' quota-driven salespeople were required to show such flip charts to each prospective student and were trained that they were the most important part of the interview process as they would provide prospective students with the facts necessary to make an informed decision to attend CCA.
10 COMPLAINT
1 both implicitly and explicitly. Representative examples include, but are not limited to, the
2 following:
3 a. A CCA video advertisement states: "How would you like a career in one of the
4 fastest growing fields today, the hospitality industry. Imagine yourself
5 managing world-class restaurants, fine hotels, resorts, even working on cruise
6 ships. Training in hotel and restaurant management can provide you the skills
7 needed to obtain a fun-filled, good paying career."
8 b. A CCA print advertisement attached hereto as Exhibit 9 states: "Move up to
9 management. ... Earn your associate degree for hospitality and restaurant
10 management in less than a year ... "
11 c. A CCA print advertisement attached hereto as Exhibit 10 states: "Le Cordon
12 Bleu Hospitality and Restaurant Management Degree Program Earn your
13 associate's degree for an upwardly mobile career in the dynamic hospitality
14 industry. Our world-class training can prepare you for a broad range of
15 hospitality and restaurant management positions: • Hotel Manager • Restaurant
16 Manager • Resort/Spa Director • Cruise Line Director • Casino/Gaming
17 Manager • Director of Food & Beverage • Special Events Manager"
18 d. A CCA print advertisement attached hereto as Exhibit 11 states: "Our Associate
19 of Occupational Studies Degree in Le Cordon Bleu Hospitality & Restaurant
20 Management can give you the knowledge and skills to succeed in one of the
21 fastest growing industries. . .. Whether it's managing a hotel or restaurant - or
22 a resort, casino, cruise ship, or spa - you should have what you need to tackle
23 any professional entry-level hospitality position."
24 e. A CCA radio advertisement states: "To some people, the excitement of working
25 in a restaurant is all about the cooking. To others, it's running or owning their
26 own restaurant. If you're one ofthese people, find out about the Le Cordon
27 Bleu Hospitality and Restaurant Management Program at California Culinary
11
1
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3 30.
Academy .... Get the training and know-how you need to get an exciting,
good-paying career that can put you out front."
The School Defendants provided to each prospective student placement statistics
4 showing that the vast majority of graduates found employment. 5 Prospective Culinary Arts and
5 B&P students reasonably understood that these placement rates were based on Chef or equivalent
6 positions and Prospective HRM students reasonably understood that these placement rates were
7 based on hotel/restaurant manager or equivalent positions because, as set forth above, the School
8 Defendants represented that this was the type of position to which a degree from CCA would lead.
9 31. The School Defendants supported these statistics with representations that their
10 graduates had a strong track record of successful placements. Representative examples of these
11 representations include, but are not limited to the following:
12 a. In a CCA video advertisement, CCA's Director of Career Services states: "Our
13 graduates and students are in high demand in the industry with the career
14 services department receiving from 50 to 70 job leads per week for our students
15 and graduates."
16 b. A CCA print advertisement attached hereto as Exhibit 12 states: "The Academy
17 has an exceptional placement rate of graduates within the industry."
18 32. The School Defendants represented that their Culinary Degree Programs were a
19 good investment. This message was implied by each of the representations described above, but
20 was also made expressly. Examples include but are not limited to the following:
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5 Until sometime in 2005, the School Defendants counted graduates as "placed" if they lasted just five days on the job rather than the 60 days required by California law (Former Educ. Code § 94854(k)(2)) or the 13 weeks required by federal law (34 CFR § 668.8(g)(ii)). This resulted in published placement rates of between 98% and 99% for the Culinary Arts Program and between 93% and 95% for the B&P Program. Beginning in 2005, the School Defendants purportedly began counting graduates as placed only after 60 days. As a result, the placement rates published between 2005 and 2008 were somewhat lower (75%-91 % for the Culinary Arts Program and 57%-95% for the B&P Program). All ofthese rates were dramatically higher than they would have been ifthe School Defendants included only Chef or managerial positions and their equivalent. The School Defendants began publishing placement rates for the HRM Program in 2005. They ranged from 91 % to 76%.
12 COMPLAINT
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21 33.
a. As part of a flip chart entitled "MAKING THE RIGHT DECISION," the
School Defendants' quota-driven salespeople showed prospective students a
table, attached hereto as Exhibit 13, which illustrates a CCA graduate's
projected earnings over a five year period compared with the military, junior
college, and four year college. The table represents that by attending CCA, a
prospect would make significantly more money, and do it sooner, than they
would through these alternatives.
b. The School Defendants' quota-driven salespeople showed prospective
students flip chart pages, attached hereto as Exhibit 14, which state "Financing
Your Education An Investment in Your Future ... CONGRATULATIONS! ...
You've chosen a wonderful school. You're making a great investment in your
future."
c. By the nature ofthe transactions the School Defendants proposed to Plaintiffs,
i.e. the tuition and costs the School Defendants proposed Plaintiffs pay, and the
loans that would be and were required to pay those costs and to attend CCA
(loans that the School Defendants arranged, facilitated, or otherwise made
available), the School Defendants' represented and then confirmed to
prospective students that those who graduated would be able to service, and
within a reasonable period of time payoff, the loans that the School Defendants
arranged for them.
The School Defendants represented that CCA had an aggressive on-site job
22 placement agency with a great track record for successful placements that would provide career
23 services support for graduates throughout their careers.
24 34. The School Defendants represented that CCA had an excellent reputation in the
25 food service industry and that its graduates were highly sought after by employers.
26 35. Each of the foregoing representations was false and misleading. The true facts,
27 which the School Defendants knew and had a duty to disclose, were as follows:
13
COMPLAINT
1 36. The vast majority of Culinary Arts and B&P graduates -estimated at 95% or
2 more-are not hired as Chefs. The few who are able to obtain Chef jobs do so because of
3 credentials and abilities they had before attending the school (CCA's quota-driven salespeople
4 routinely suggest to Chefs that a CCA degree will qualify them for Executive Chef jobs and six
5 figure salaries, though in fact most who are Chefs before attending CCA are lucky if they can get
6 back into a Chef position after the school).
7 37. If able to find employment in the culinary industry at all, as reflected by CCA's
8 own surveys and data, 95% or more of CCA' s graduates find only entry level positions as line
9 cooks, prep cooks, or other similar positions. On average, these entry level positions paid CCA
10 graduates about $11 an hour-significantly less than Chef positions typically pay, and not enough
11 to maintain even a minimal standard ofliving, particularly in San Francisco. After adjusting for
12 the student debt service obligations that the School Defendants knew Plaintiffs and each of them
13 would have as a result of attending the school, it is not possible to live on that wage.
14 38. In reality, only years of experience in restaurant kitchens working at low wages
15 and/or truly exceptional ability, including leadership and management skills (for which the School
16 Defendants' "admissions" personnel do not screen) can qualify anyone to be a Chef. Attending or
17 graduating from CCA does not. Because of the experience and skills required to become a Chef,
18 and the economic burden imposed by the debt a CCA education entails, perhaps 1 in 50 graduates
19 will ever become a Sous Chef, and 1 in 200 will ever become a Chef. And by the time they do,
20 their debt will be so great, they will continue to live in effective poverty for many, many years. In
21 other words, less than 5% of CCA graduates will ever get what CCA sold Plaintiffs - the
22 opportunity to become a Chef- and virtually none will ever enjoy any net financial benefit from
23 having gone to CCA, let alone the substantial benefits CCA claimed.
24 39. Likewise, the vast majority ofHRM students are not hired into management
25 positions. Rather, if able to find employment in the hospitality or culinary industries at all, they
26 find only entry level positions that pay $10 to $12 an hour on average.
27
14 COMPLAINT
1 40. Moreover, the School Defendants did not at any time obtain, have, or compile any
2 data or information regarding graduates' medium or long term jobs or wages or their prospects
3 after graduation, and/or of their progress toward becoming Chefs or managers, but instead
4 remained willfully ignorant of this information or were aware of it and withheld this information
5 from prospective students. The School Defendants, at all relevant times, had no reasonable
6 ground for believing that any significant percentage of CCA graduates would ever become Chef
7 or managers, and infact knew that they would not. Accordingly, by representing that CCA's
8 Programs lead to Chef and managerial positions, while failing to disclose that they had no factual
9 basis for that assertion, the School Defendants knowingly and intentionally or recklessly misled
10 Plaintiffs.
11 41. In or about 2010, School Defendants deleted the word "Chef' from their television
12 advertising and from recruitment materials and scripts, for the reason that the word "Chef' might
13 be "misheard" or "misleading."
14 42. The placement rates the School Defendants provided to Plaintiffs were not based
15 on "Chef," manager, and equivalent positions alone, but on any position in the "hospitality"
16 industry obtained by any graduate. Thus, a graduate who obtained a position as a Starbucks
17 barista, an $8 an hour prep cook, a hot dog stand operator, or a "food runner" at multiple mass
18 service events, would be considered to have been "placed" for purposes of these statistics. Part-
19 time and "freelance" employees were also considered "placed." And, indeed, these placement
20 statistics reflected almost entirely jobs paying $12 an hour or less. Because Culinary Arts and
21 B&P Plaintiffs reasonably understood these placement rates to refer to "Chef" positions, and
22 because HRM Plaintiffs reasonably understood these placement rates to refer to management
23 positions, when they did not, and to positions paying wages that these jobs did not pay, the
24 placement statistics were grossly false and misleading.
25 43. The School Defendants knew that the placement rates were not based only on
26 "Chef," manager, or equivalent positions because they themselves had sought and obtained the
27 raw data upon which the statistics were based, had decided what jobs to consider as successful
15
COMPLAINT
1 placements, and calculated the resulting placement rates. The School Defendants also knew that
2 prospective students believed the placement rates were based on Chef, manager, and similarly
3 well-paying positions because the School Defendants were the ones that had led prospective
4 students to this belief and because counting as successful placements other, inferior positions (the
5 kind actually counted) was inconsistent with numerous other representations made by the School
6 Defendants as alleged above.
7 44. A CCA degree is not a good investment but an extremely bad one. To cover the
8 $25,000 to $50,000 cost ofCCA's Programs, virtually all ofCCA's prospective students had to
9 borrow money, mostly at high and variable interest rates, and mostly with loans specifically
10 arranged by CCA. School Defendants at all relevant times knew that the average loan for their
11 students would bear interest of 12%. Upon graduating, the vast majority of CCA students cannot
12 afford the monthly debt service on these loans with the $12 an hour or less they earn, a fact the
13 School Defendants at all relevant times knew.
14 45. As a consequence, CCA students almost uniformly are compelled to enter into
15 "deferral" arrangements with their lenders whereby their payments obligations are temporarily
16 suspended but interest accrues along with special charges or fees for the deferral arrangement.
17 Within three years of graduating, the average CCA graduate owes an estimated $60,000 on his or
18 her CCA student loans. After five years, collection charges and other fees and penalties frequently
19 push this debt to over $100,000. As student loans are not dischargeable in bankruptcy absent
20 exceptional circumstances, these former CCA students have been effectively placed in a position
21 of indentured servitude. Former CCA students in many, many cases will never be able to buy a
22 house, obtain credits cards, rent a car, or borrow money for a valuable education. A $25,000 to
23 $50,000 vocational degree that does not increase income and that is financed through high interest
24 debt that graduates cannot afford to repay is not a good investment, but a financially devastating
25 mistake that destroys a person's quality oflife in material ways.
26 46. The School Defendants at all relevant times knew that a CCA degree was not a
27 good investment. As set forth above, through their own primary research (calls to graduates and
16 COMPLAINT
1 employers) and the resulting survey results they were aware that their graduates only earned $10
2 to $12 an hour working in the culinary and hospitality field, the same wage they could earn in the
3 culinary field without a CCA degree. They were also aware of the vast majority of students' loan
4 terms, having arranged the loans and processed the loan applications themselves. In addition, they
5 were actively involved in monitoring and minimizing their graduates' short term default rate by
6 encouraging students to defer their student loan payment obligations-because an excessive
7 default rate would disqualify CCA from receiving Title IV funding. Through this involvement,
8 the School Defendants learned that, with rare exceptions, CCA graduates did not earn enough
9 working in culinary jobs to repay their student loans and otherwise pay even very modest living
10 expenses. As only the two year default rate was relevant to Title IV eligibility, however, the
11 School Defendants remained willfully ignorant of their graduates' medium and long-term default
12 rates and debt burden.
13 47. Plaintiffs are informed and believe that when, during the enrollment process,
14 prospective students asked whether they could expect to service and then payoff their loans taken
15 out to attend CCA within a reasonable period of time, they were told "yes" and were provided
16 with a written "estimate" of what they would need to pay per month to service and payoff their
17 loans taken out to attend CCA. This written estimate did not reflect the large payments on
18 "private" loans that would be required and arranged by CCA with the Lender Defendants to pay
19 for the proposed CCA training. Instead, the "estimate" only reflected what CCA guessed the
20 payment would be on the student's federally subsidized loans. Prospective students were not told
21 that this written estimate of their monthly payment was only a "guess" by CCA as to the amounts
22 required to be paid, or that it intentionally excluded the cost of payments that would be required
23 on the one or more additional "private" loans that CCA would arrange and the prospective student
24 would be required to obtain to pay for the proposed CCA training-a cost that represented the
25 significant majority of the expected monthly debt service obligation. In short, these "estimates"
26 were intentionally low, so as to convince prospective students and continuing students that they
27
17 COMPLAINT
1 would be able to service, and in a reasonable time payoff, their loans when in fact, CCA at all
2 relevant times knew that this was impossible.
3 48. CEC's stock analysts were also aware that CCA-like CEC's other culinary
4 schools-was not a good investment. In a third-quarter 2008 CEC earnings call, one analyst said
5 to CEC's senior officers " ... [W]e've all known for quite some time that the starting salary levels of
6 students that graduate in that segment [culinary school] are very low, and that the cost equation
7 does not work out on paper the way it does in some ofthe other segments." In response, CEC's
8 senior officers did not deny this economic fact.
9 49. Contrary to CCA's representations, CCA did not have an aggressive on-site job
10 placement agency with a great track record for successful placements and did not provide lifetime
11 Career Services support. Career Services personnel did little more than direct graduates to
12 web sites with job listings that they could find themselves, such as Craigslist, or provide
13 compilations of listings mined from such websites. Career Services personnel devoted no time to
14 students who were not recent graduates. If such graduates got any help at all, it was a referral to a
15 public job board.
16 50. Contrary to CCA's representations, at all relevant times CCA had a poor reputation
17 in the food service and hospitality industry. At all relevant times, CCA admitted students without
18 regard to their ability and graduated students without due regard for whether they had mastered the
19 skills CCA purportedly teaches, many graduates of CCA had few or none ofthe skills a culinary
20 degree should guarantee. Accordingly, a degree from CCA denoted an unlikelihood rather than a
21 likelihood of capability and was frequently a detriment to graduates seeking employment-
22 including those who had mastered the appropriate skills.
23 51. Rather than disclose these facts, the School Defendants actively concealed them.
24 Quota-driven salespeople were directed to, and methodically and pursuant to the School
25 Defendants' policies did, methodically avoid discussion of the foregoing true facts. Ifprospective
26 students raised the issues, the quota-driven salespeople lied or changed the subject.
27 Oral Misrepresentations
18 COMPLAINT
1 52. Through their quota-driven salespeople, the School Defendants made each of the
2 foregoing misrepresentations orally. The quota-driven salespeople also engaged in a pattern and
3 practice of making the following additional oral misrepresentations:
4 53. CCA's quota-driven salespeople routinely claimed that CCA graduates could
5 expect to earn Chef or hotel or restaurant manager salaries of $40,000 a year--or in many specific
6 instances much more--or, (instead of answering the "what will I earn" question directly),
7 suggested that prospective students could find out what a "Chef' or restaurant or hotel manager
8 makes by doing their own research online (which they knew would result and did result in
9 prospective students finding that median Chef and restaurantlhotel manager salaries exceed
10 $40,000 a year).
11 54. CCA's quota-driven salespeople claimed that CCA was selective in the students it
12 admitted, and that it was up to the admissions' representative to either recommend or not
13 recommend the student for admission to an "admissions committee," and that such quota-driven
14 salespeople would only recommend the student for admission ifthey were convinced the student
15 would be a good fit and successful in the Program. These representations of selectivity were
16 implemented by the School Defendants through scripts they provided to their quota-driven
17 salespeople. They were intended to and did bolster the credibility ofthe School Defendants'
18 representations that its Programs qualified graduates for Chef or management jobs and salaries.
19 55. As the School Defendants knew, each of these representations was misleading.
20 The true facts, which the School Defendants had a duty to disclose, were as follows:
21 a. The vast majority of Culinary Arts and B&P graduates are not hired as Chefs.
22 If they find employment in the culinary industry at all, they are hired into entry
23 level positions as line cooks, prep cooks, or other similar positions. The vast
24 majority ofHRM students are not hired as hotel or restaurant managers, but
25 into entry level positions. On average, these entry level positions paid CCA
26 graduates $10 to $12 an hour-significantly less than hourly Chef or
27 hotel/restaurant management positions typically pay.
19
COMPLAINT
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8 56.
b. There is no selectivity in CCA's admissions process, or at least none dependent
upon ability or suitability. Anyone with a high-school diploma and/or aGED
who is judged able to obtain a loan and show up for at least the first five days of
class (thereby enabling CCA to retain a healthy chunk of the student's tuition
payments even if they subsequently drop out) is admitted. The interview
process is solely designed to make the target student more likely to sign up and
show up, not to screen the target student in any way.
The School Defendants were on notice at all relevant times that these
9 misrepresentations and lies were being told to prospective students by their employees and, in fact,
10 rewarded their top sales people who, of necessity, were the ones telling these lies. Rewards
11 included, among other things, miscellaneous perquisites and better sales leads. Because enrollees
12 who knew the truth about CCA would not enroll, honest CCA salespeople failed to convert sales
13 leads into admissions at the same rate as their peers (if at all), were not able to meet their
14 admissions targets, and were fired.
15 57. Grossly misled, and reasonably relying on the School Defendants'
16 misrepresentations, Plaintiffs and each of them borrowed large sums of money at high interest
17 rates and enrolled in CCA. As a result, Plaintiffs have been damaged by, among other things: (1)
18 borrowing the cost of attending CCA at high interest rates; (2) paying tuition to the School
19 Defendants; (3) paying interest, penalties, and other charges on student loans that the School
20 Defendants induced them to take out to pay tuition; (4) losing time and income that they otherwise
21 would have earned; (5) incurring emotional, psychological, and related injuries; and (6) incurring
22 severe long-term damage to their credit including, but not limited to, their ability to obtain credit
23 for auto loans, additional student loans, horne loans, and credit cards. Plaintiffs have been
24 damaged in other and further ways subject to proof at trial.
25 Lender Defendants' Derivative Liability Under the Holder Clause
26 58. The vast majority of students who attended CCA during the relevant period took
27 out student loans to cover their tuition and related costs. Sallie Mae or one of its partners or
20 COMPLAINT
1 affiliates provided the vast majority of these loans because CCA referred all students to Sallie Mae
2 pursuant to a contract between the School Defendants and Sallie Mae. The remaining loans were
3 provided by other lenders.
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59. On information and belief, the School Defendants referred each Plaintiff to the
lenders that originated each ofthat Plaintiff's loans. Pursuant to 16 C.F.R. § 433.2 (the "Holder
Rule"), the Federal Trade Commission ("FTC") requires that all purchase money loan agreements,
including agreements for the purchase of educational services,6 must contain a clause that subjects
the holder of the note to all claims and defenses that the buyer could assert against the seller
here, the School Defendants (hereinafter the "Holder Clause"). The Required wording of the
Holder Clause is substantially as follows:
ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.
Based on information and belief, all Notes executed during the relevant period contain the Holder
Clause. If any Notes do not contain a Holder Clause, such a clause must be implied by operation
of law.
60. On information and belief, the Lender Defendants, and each of them, are or were
19 each legal or beneficial holders of one or more of the Notes. Pursuant to the Holder Clauses
20 contained within the Notes, explicitly or by operation oflaw, Plaintiffs may assert against the
21 Lender Defendants all claims and all defenses to payment they have or would have against the
22 School Defendants.7 Plaintiffs may recover all payments they made to the Lender Defendants
23 under the Notes and are entitled to cancellation ofthe Notes and all related obligations.
24
25
26
27
6 The FTC's own guidelines expressly apply the Holder Rule to vocational school student loans. Guidelines on Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses 41 Fed. Reg. 20022, 20024 (May 14, 1976). 7 These claims may be asserted directly against CEC and CCA, which also hold Notes.
21
COMPLAINT
1 61. On infonnation and belief, each Note contains an attorneys' fees provision or its
2 equivalent, such as a clause allowing the Holder to recover collection costs in the event of default.
3 Such clauses are reciprocal by operation of California Civil Code section 1717(a). Accordingly,
4 Plaintiffs seek attorneys' fees from the Lender Defendants for the cost of enforcing the Lender
5 Defendants' obligations under the Notes.
6 62. The Lender Defendants collect interest, principal, and/or other charges arising
7 under the Notes.
8 Tolling of The Statute of Limitations
9 63. On September 28, 2007 a class action lawsuit entitled Alison Amador, et al. v.
10 California Culinary Academy, Inc., et al., Case No. CGC-08-473866 ("Amador") was filed in the
11 San Francisco County Superior Court. On April 3, 2008, a class action lawsuit entitled Jennifer
12 Adams, et al. v. California Culinary Academy, Inc., et al., Case No. CGC-08-473866 ("Adams")
13 was filed in the San Francisco County Superior Court. On March 28,2011, the court provisionally
14 certified a settlement class for the settlement of those actions. The claims asserted in this action
15 arise from the same facts and injuries as the claims asserted in Amador and Adams. Moreover, at
16 all times from September 28, 2007 until the filing of this action, each Plaintiff was a named
17 plaintiff or member ofthe putative class in Adams and/or Amador.8 Accordingly, the running of
18 the applicable statutes of limitation on Plaintiffs' claims has been tolled for all Plaintiffs from
19 September 28, 2007 until the filing of this action by the pendency of Amador and Adams.
20
21
22 64.
First Cause of Action for Fraud (Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
23 as though repeated here.
24
25
26
27
65. As part of the Fraud, the School Defendants knowingly and intentionally made
numerous false and/or misleading representations of material fact with the intent to deceive andlor
8 All Plaintiffs were members of the Amador putative class from September 28, 2007 until Amador's class definition was narrowed on September 3, 2009. All Plaintiffs were members of the Adams putative class from April 3, 2008 until the filing of this action.
22 COMPLAINT
1 induce reliance by Plaintiffs. The School Defendants further failed to disclose and concealed facts
2 that they were required to disclose to prevent other statements that they had made from being false
3 and misleading. Plaintiffs actually and reasonably relied on these misrepresentations, omissions,
4 and concealments resulting in substantial damages to Plaintiffs in the form of tuition and expenses
5 paid, loan principal and interest obligations incurred, work time lost, life opportunities lost,
6 damage to credit, and emotional, psychological, and other injuries incurred.
7 66. As a direct and proximate result, each Plaintiff has been damaged in a sum in
8 excess of the jurisdictional limits of this Court.
9 67. Defendants' herein-alleged wrongful acts and omissions, and each of them, were
10 knowingly, willfully, intentionally, maliciously, oppressively, and fraudulently undertaken with
11 the express purpose and intention of defrauding Plaintiffs, and each of them, all to the substantial
12 financial benefit of Defendants, and each of them, entitling Plaintiffs to punitive damages.
13
14
15
16 68.
Second Cause of Action for Violation of California Business and Professions Code § 17200, et seq.
[The Unfair Competition Law] (Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
17 as though repeated here.
18 69. California Business and Professions Code § 17200, et seq., (the "Unfair
19 Competition Law" or "UCL") authorizes private lawsuits to enjoin acts of "unfair competition,"
20 which includes any unlawful, unfair, or fraudulent business practice.
21 70. The UCL imposes strict liability. Plaintiffs need not prove defendant intentionally
22 or negligently engaged in unlawful, unfair or fraudulent business practices-but only that such
23 practices occurred.
24 71. The material misrepresentations, concealments, and non-disclosures by the School
25 Defendants are unlawful, unfair, and fraudulent business practices prohibited by the UCL.
26 72. The School Defendants violated the UCL by engaging in the following unlawful
27 business acts and practices, among others:
23 COMPLATNT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 73.
a. Committing common law fraud;
b. Violating the Consumer Legal Remedies Act, California Civil Code § 1770, et
seq., as alleged more fully below;
c. Violating 20 U.S.C. § 1094(a)(8), by failing to provide information
substantiating the truthfulness of published placement statistics at or before the
time of the potential student's application;
d. Violating 16 CFR 254.4(d), by misrepresenting graduates' career success and
salaries;
e. Violating 34 CFR 668.8, by including jobs in placement statistics that were not
in the recognized occupation for which students were trained or in a related
comparable recognized occupation;
f. Violating 34 CFR 668.14(b)(10), by failing to provide information
substantiating the truthfulness of published placement statistics at or before the
time of the potential student's enrollment;
g. Violating the Private Postsecondary Education Reform Act of 1989 ("Reform
Act") in various ways including, without limitation, those identified in the
Fourth Cause of Action below, which is incorporated in its entirety as though
repeated here. At all relevant times the Reform Act was either the law of the
State of California or the School Defendants were obliged to follow it by
contracting with the State of California to do so, for the benefit of all CCA
prospective students and students, including Plaintiffs and each of them.
The School Defendants' above-alleged actions and each ofthem further constituted
23 unfair business acts and practices since the actions were deceptive, sharp, immoral, unethical,
24 oppressive, unscrupulous, substantially injurious, and operate to the competitive disadvantage of
25 other schools that do not engage in such practices. Moreover, the injury to Plaintiffs was
26 substantial and outweighs the utility of the School Defendants' practices.
27
24 COMPLAINT
1 74. The School Defendants' above-alleged actions and each of them further constituted
2 fraudulent business acts and practices since the actions were likely to, and did, deceive the public
3 and likely will mislead the public in the future.
4 75. At all relevant times, the School Defendants used the Le Cordon Bleu moniker and
5 marketed their Le Cordon Bleu affiliation, pursuant to a license agreement between CEC and Le
6 Cordon Bleu (the "LCB License Agreement"), as an inducement to potential students to enroll at
7 CCA, and as a representation of the level of skills obtained by graduates and the respect conferred
8 upon graduates by the culinary community. At all relevant times, the School Defendants violated
9 terms contained and existing in their LCB License Agreement-including class-size limitations,
10 promises to ensure students are provided with all necessary support systems, and requirements that
11 certain levels of skill be attained by graduates-which were specifically intended to benefit CCA
12 students, including Plaintiffs. The LCB License Agreement was effective at all relevant times
13 and, pursuant to those limitations, the School Defendants had a legal duty to their licensor and
14 Plaintiffs to conform to its quality and instruction requirements, which the School Defendants
15 disregarded. The School Defendants' violations of the LCB License Agreement, combined with
16 the above-alleged actions and each of them, constituted unlawful, unfair, and fraudulent business
17 acts or practices.
18 76. Regardless of whether Plaintiffs were intended beneficiaries of the LCB License
19 Agreement, CCA's use of the Le Cordon Bleu moniker and its marketing ofCCA's Le Cordon
20 Bleu affiliation as an inducement to potential students to enroll at CCA, all while failing to comply
21 with the quality standards enumerated in the LCB License Agreement and represented by that
22 brand name-including class-size limitations, promises to ensure students are provided with all
23 necessary support systems, and skills actually taught and mastered in the program-constituted
24 unlawful, unfair, and fraudulent business acts or practices.
25 77. Pursuant to Cal. Bus. & Prof. Code § 17204, an action for unfair competition may
26 be brought by any "person ... who has suffered injury in fact and has lost money or property as a
27 result of such unfair competition." The School Defendants' wrongful misrepresentations and
25
COMPLAINT
1 omissions have directly and seriously injured Plaintiffs by causing them to enroll and pay for a
2 CCA education.
3 78. The unlawful, unfair, and fraudulent business practices of Defendants are ongoing
4 and present a continuing threat that members of the public will be misled into attending CCA.
5 79. Pursuant to the UCL, Plaintiffs are entitled to preliminary and permanent injunctive
6 relief ordering the School Defendants to cease this unfair competition, as well as disgorgement
7 and restitution to Plaintiffs of all money collected and Notes made or held in connection with the
8 School Defendants' unfair competition, or such portion ofthose revenues as the Court may find
9 equitable.
10
11
12
13 80.
Third Cause of Action for Violation of California Civil Code § 1770, et seq.
[The Consumer Legal Remedies Act] (Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
14 as though repeated here.
15 81. The Consumers Legal Remedies Act (the "CLRA") creates a non-exclusive
16 statutory remedy for unfair methods of competition and unfair or deceptive acts or business
17 practices. See Reveles v. Toyota by the Bay, 57 Cal. App. 4th 1139, 1164 (1997). Its self-declared
18 purpose is to protect consumers against unfair and deceptive business practices and to provide
19 efficient and economical procedures to secure such protection. Cal. Civil Code § 1760. The
20 CLRA was designed to be liberally construed and applied in favor of consumers to promote its
21 underlying purposes. !d.
22 82. The School Defendants have violated paragraphs 5, 7, 9, and 19 of Cal. Civ. Code
23 § 1770(a) by engaging in the unfair and/or deceptive acts and practices set forth herein. The
24 School Defendants' unfair and deceptive business practices in carrying out the Fraud were and are
25 undertaken in transactions with consumers that were and are intended to and did and do result in
26 the purchase of the School Defendants' services by consumers, including Plaintiffs, in violation of
27 the CLRA. Cal. Civil Code § 1770, et seq.
26 COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
83. As a result ofthe School Defendants' unfair and/or deceptive business practices,
Plaintiffs and all purchasers of the School Defendants' services have suffered damage and lost
money in that they paid for services that were not as represented, but were substantially inferior.
Plaintiffs seek and are entitled to an order enjoining the School Defendants from continuing to
engage in the unfair and deceptive business practices alleged herein.
84.
Fourth Cause of Action for Violations of Former Education Code Section 94700, et seq.
[Private Postsecondary and Vocational Education Reform Act of 1989] (Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
as though repeated here.
85. At all relevant times up to and including June 30, 2007, the School Defendants
were obligated to comply with the provisions of the Private Postsecondary and Vocational
Education Reform Act of 1989, Educ. Code §§ 94700, et seq. (the "Reform Act"). These claims
arguably expired, but were revived by the Legislature effective January 1, 2010. Moroever,
notwithstanding the expiration of the Reform Act on June 30, 2007, the School Defendants were
obligated to comply with its provisions because they entered a voluntary agreement with the
California Department of Consumer Affairs to do so, effective June 30, 2007. The School
Defendants committed the following violations of the Reform Act:
a. The School Defendants violated Educ. Code § 94832(a) by making or causing
to be made numerous statements that were untrue or misleading, either by
actual statement, omission, or intimation. These acts and omissions have been
alleged extensively above but include, without limitation, misrepresentations
and omissions regarding: the positions and wages that CCA's Programs lead to
and the assistance CCA provides in obtaining them, CCA's selectivity, CCA's
graduates' financial prospects, the affordability ofCCA's Programs, and CCA's
reputation in the job market for culinary professionals.
27
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
b. The School Defendants violated Educ. Code § 94832(b) by engaging in
numerous false, deceptive, misleading, or unfair acts in connection with
advertising and promotion, the recruitment of students for enrollment, the offer
or sale of a program of instruction, job placement, training and instruction, the
collection of payments, and/or the withholding of equipment, educational
materials, or loan or grant funds from students. These acts and omissions have
been alleged extensively above but include, without limitation
misrepresentations, intimations, and omissions regarding: the positions and
wages that CCA's Programs lead to and the assistance CCA provides in
obtaining them, CCA's selectivity, CCA's graduates' financial prospects, the
affordability of CCA's Programs, and CCA's reputation in the job market for
culinary professionals.
c. The School Defendants violated Educ. Code § 94832(1) by directing their
representatives to perform unlawful acts.
d. The School Defendants and their representatives violated Educ. Code §
94830(h) by presenting false or misleading information to prospective students
relating to CCA and employment opportunities.
e. The School Defendants and their representatives violated Educ. Code § 94859
(a) & (b) in that, before executing enrollment agreements with Plaintiffs, the
School Defendants and their representatives failed to provide the students with
required disclosures and the disclosures that they provided were inaccurate and
misleading. As an example, and without limitation, in violation of Educ. Code
§ 94859(a)(2)(B) the School Defendants provided misleading placement rates
not calculated in compliance with Educ. Code § 94854 in that these statistics
included employment in occupations or job titles other than those to which the
courses of instruction were represented to lead. Additionally, the School
Defendants and their representatives violated Educ. Code § 94859(b) by failing
28 COMPLAINT
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2
3
4
5
6
7
8
9
10
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12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
to document all the facts required to substantiate the information required by
Educ. Code § 94859(a)(2).
f. The School Defendants and their representatives violated Educ. Code §
94859(a)(4) in that, before executing enrollment agreements with Plaintiffs, the
School Defendants and their representatives failed to provide students with a
current catalog or brochure containing information describing all of the
occupations or job titles to which the programs of instruction were represented
to lead and all other material facts concerning the institution and the programs
of instruction that might reasonably affect the students' decisions to enroll.
g. The School Defendants and their representatives violated Educ. Code §
94859(a)(2)(D) by making express or implied claims about the salary that may
be earned after completing CCA's Culinary Program and by failing to disclose:
(i) the percentage of students who were originally scheduled, at the time of
enrollment, to complete the program of instruction in the most recent calendar
year that ended not less than six months prior to the date of disclosure who earn
salaries at or above the claimed level; and (ii) the ranges of monthly salaries
earned by these students in two hundred dollar ($200) increments and the
number of these students in each salary range.
h. The School Defendants and their representatives violated Educ. Code §
94859(f) by obtaining signed enrollment agreements from Plaintiffs without
providing students with a reasonable opportunity to review the claims and
disclosures referenced above.
1. The School Defendants and their representatives violated Educ. Code § 94872
by failing to administer valid standardized tests to Plaintiffs prior to entering
into enrollment agreements with them, that were designed to measure, and that
reliably and validly measured, a student's ability to be successfully trained to
29
COMPLAINT
1
2
3 86.
perform the tasks associated with the occupations or job titles to which the
programs of instruction were represented to lead.
The School Defendants and their representatives willfully committed the above
4 violations, and the School Defendants and their representatives are therefore subject to the civil
5 penalty provisions provided by Educ. Code § 94877( c), entitling Plaintiffs to damages, restitution,
6 and a civil penalty of up to double damages.
7
8
9
10
11
87. Pursuant to the Reform Act, Plaintiffs seek restitution, damages, a civil penalty of
double damages, and attorneys' fees and costs.
88.
Fifth Cause of Action for Breach of Contract (Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
12 as though repeated here.
13 Breach of the Compliance Agreement
14 89. As set forth above, effective July 1, 2007, the School Defendants entered an
15 agreement with the California Department of Consumer Affairs to comply with all state statutes,
16 rules, and regulations pertaining to private postsecondary institutions as they existed on June 30,
17 2007 (the "Compliance Agreement"). Pursuant to the Compliance Agreement, the School
18 Defendants were obligated to comply with the Reform Act for the duration of the relevant period.
19 90. The purpose of the Compliance Agreement was "ensuring continued student
20 protection after [the Reform Act] became inoperative." Thus the Compliance Agreement was
21 made expressly for the benefit of California students, including Plaintiffs. Accordingly, Plaintiffs
22 are entitled to enforce this contract as third party beneficiaries.
23 91. As set forth above, the School Defendants violated the Reform Act. Each such
24 violation constitutes a breach of the Compliance Agreement.
25 92. Plaintiffs have been damaged by the School Defendants' breaches of the
26 Compliance Agreement.
27
30 COMPLAINT
1
2 93.
Breach of the Promise to Provide Le Cordon Bleu Training
The School Defendants contracted with Plaintiffs to provide them with Le Cordon
3 Bleu training. Accordingly, the School Defendants were obligated to provide training that
4 conformed with Le Cordon Bleu's standards and instruction requirements. The School
5 Defendants breached their agreement to provide Le Cordon Bleu training by failing to maintain a
6 16-1 student to teacher ratio at CCA as Le Cordon Bleu required, by failing to maintain the quality
7 of instruction required, and by failing to require LCB skills of graduates.
8
9
10
11
12
94. Plaintiffs have been damaged by the School Defendants' breach of the agreement to
provide Le Cordon Bleu training.
95.
Sixth Cause of Action for Declaratory Relief
(Against All Defendants)
Plaintiffs incorporate the allegations contained in each of the foregoing paragraphs
13 as though repeated here.
14 96. As set forth in detail above, there is an actual controversy between Plaintiffs and
15 the holders of all Notes regarding the validity and enforceability of the Notes. Note holders
16 maintain that the notes are valid and enforceable whereas Plaintiffs dispute this and contend that
17 they are unenforceable in their entirety (and further that all those who at any time held any Note
18 must return all payments collected thereon). Pursuant to Code of Civil Procedure § 1060,
19 Plaintiffs are entitled to and hereby seek a declaration that all the Notes are void, voidable, and/or
20 unenforceable in their entirety, or in such part as the Court may determine.
21 Prayer for Relief
22 WHEREFORE, Plaintiffs pray for relief and judgment as follows-except that Plaintiffs
23 do not seek monetary remedies under the CLRA at this time:
24 1. For preliminary and permanent injunctive relief enjoining Defendants CEC and
25 CCA, their agents, servants and employees and all persons acting in concert with them from
26 implementing their Fraud and from continuing to engage in the unfair, unlawful and/or fraudulent
27 business practices alleged above and that may yet be discovered in the prosecution of this action;
31 COMPLAINT
1 2. For restitution and disgorgement of all money or property wrongfully obtained by
2 Defendants, including without limitation all Notes and all proceeds of Notes;
3
4
3.
4.
5 an example;
6 5.
F or damages;
For punitive damages against Defendants in an amount sufficient to punish and set
For a civil penalty of up to double damages caused by the School Defendants'
7 violations of the Refonn Act and derivatively against the Lender Defendants pursuant to the
8 Holder Clause;
9 6. For an accounting by each and all Defendants for any and all profits derived by
10 them from the herein-alleged unlawful, unfair, and/or fraudulent conduct and/or business
11 practices;
12 7. For the cancellation of each, every, and all Notes made by Plaintiffs, or any of
13 them, by any of the Defendants, their successors, and their successors and assigns;
14 8. For a declaration that Plaintiffs' Notes are void, voidable, and/or otherwise
15 unenforceable;
16 9. For attorneys' fees and expenses pursuant to all applicable laws including, without
17 limitation, contract, Civil Code section 1717, Code of Civil Procedure § 1 021.5, fonner Refonn
18 Act § 94877(b); and the common law private attorney general doctrine;
19
20
21
22
23
24
25
26
27
For costs of suit; 10.
11. For such other and further relief as the Court deems just and proper.
Date: June 3, 2011 RESPECTFULLY SUBMITTED,
32
GALLO & ASSOCIATES T ILLS LAW FIRM
oshua D. Boxer Counsel for Plaintiffs
COMPLAINT
1 DEMAND FOR JURY TRIAL
2 Plaintiffs hereby demand a jury trial on all issues so triable.
3
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27
Date: June 3, 2011 RESPECTFULLY SUBMITTED,
By:
33
GALLO & ASSOCIATES THE MILLS LAW FIRM
Counsel for Plaintiffs
COMPLAINT
APPENDIX
No. Name Program Note Holder(s)
1 Karina Abarca Le Cordon Bleu Culinary Arts
2 Jose Aguilera Le Cordon Bleu Culinary Arts
3 Joshua Aiken Le Cordon Bleu Culinary Arts
LaShannon Alexander Le Cordon Bleu Hospitality and Restaurant
4 Management
5 Marco Alvarado Le Cordon Bleu Culinary Arts
Rhema Andrews Le Cordon Bleu Hospitality and Restaurant
6 Management
Janine Bartolotti Baking and Pastry Arts Sallie Mae 1
7
Threasa Belmares Le Cordon Bleu Hospitality and Restaurant
8 Management
9 Anthony Belzer Le Cordon Bleu Culinary Arts
10 Robert Booth Le Cordon Bleu Culinary Arts
11 Brandon Bowmer Baking and Pastry Arts Sallie Mae
12 Keith Bramwell Le Cordon Bleu Culinary Arts
13 Ryan Briar Le Cordon Bleu Culinary Arts
14 Peter Brookens Le Cordon Bleu Culinary Arts
15 Brian Bueno Culinary Arts
16 Aaron Callahan Le Cordon Bleu Culinary Arts Sallie Mae
17 Andrew Carroll Le Cordon Bleu Culinary Arts
18 Stacie Castillo Baking and Pastry Arts
19 Zachary Champlin Le Cordon Bleu Culinary Arts
20 Jaclynn Chavez Le Cordon Bleu Culinary Arts
21 Jeremy Clabough Le Cordon Bleu Culinary Arts Sallie Mae
22 Josh Cleveland Le Cordon Bleu Culinary Arts
I As used herein, "Sallie Mae" includes SLM Corporation; Sallie Mae, Inc.; and SLM Education Credit Finance Corp.
1
APPENDIX
No. Name Program Note Holder(s)
23 Julie (Contreras) Perez Baking and Pastry Arts
24 Chad Cook Le Cordon Bleu Culinary Arts
25 Brett Cooper Le Cordon Bleu Culinary Arts
Jeffrey Cross Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
26 Chase Bank, N.A.
27 Steven Delatorre Le Cordon Bleu Culinary Arts
28 Ian Delph Le Cordon Bleu Culinary Arts Sallie Mae
29 Anthony DiLilio Le Cordon Bleu Culinary Arts
30 Lisa Duncan Le Cordon Bleu Culinary Arts
31 Zachary Farnes Le Cordon Bleu Culinary Arts
Miguel Garcia Le Cordon Bleu Hospitality and Restaurant
32 Management
33 Andrew Glassmacher Le Cordon Bleu Culinary Arts Sallie Mae
34 Jesell Gonzales Le Cordon Bleu Culinary Arts
35 Evan Gourd Culinary Arts
36 Charlene Gross Le Cordon Bleu Culinary Arts
37 Sean Gude Le Cordon Bleu Culinary Arts
38 Jimmy Halverson Le Cordon Bleu Culinary Arts
39 Stefanie Hockett Culinary Arts Sallie Mae
40 Andrew Huesca Le Cordon Bleu Culinary Arts
Denise Irons Le Cordon Bleu Hospitality and Restaurant
41 Management
42 Randy Jackson Le Cordon Bleu Culinary Arts
43 Sandra Jacobs Baking and Pastry Arts Sallie Mae
44 Matthew Jarvis Culinary Arts
45 Justan Johnson Le Cordon Bleu Culinary Arts
2
APPENDIX
No. Name Program Note Holder(s)
46 Ross Johnson Culinary Arts
47 Shiloh Jones Le Cordon Bleu Culinary Arts
48 Theresa Joyce Culinary Arts
Thomas Karopoulos Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
49 Chase Bank, NA
50 Sheldon Kohn Baking and Pastry Arts
51 Adam Konfrst Le Cordon Bleu Culinary Arts
52 Don LaBarbera Baking and Pastry Arts
53 Jean-Yves Le Du Le Cordon Bleu Culinary Arts
54 Trung Le Le Cordon Bleu Culinary Arts
55 Levi Lewis Baking and Pastry Arts
56 Alan Livingston Le Cordon Bleu Culinary Arts
57 Rachel Lunzaga Le Cordon Bleu Culinary Arts Sallie Mae
58 Casey Lutz Baking and Pastry Arts
James Lyon Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
59 Chase Bank, N.A.
60 Jeffrey Macha Le Cordon Bleu Culinary Arts
61 Britt Magnuson Le Cordon Bleu Culinary Arts
62 Christian Mancilla Le Cordon Bleu Culinary Arts
63 Jason Marmor Le Cordon Bleu Culinary Arts Sallie Mae
64 Jason Marshman Le Cordon Bleu Culinary Arts
Ashley Coffey Martin Le Cordon Bleu Culinary Arts Sallie Mae; US Bancorp,
65 N.A.
66 Marc Martin Le Cordon Bleu Culinary Arts
Sallie Mae; The Education
Resources Institute, Inc.
67 Alicia McClain Le Cordon Bleu Culinary Arts
68 Corrin Mckellips Le Cordon Bleu Culinary Arts
3
APPENDIX
No. Name Program Note Holder{s)
69 Chadwick Mcwilliams Culinary Arts
70 Michael Moore Le Cordon Bleu Culinary Arts Sallie Mae
71 Jennifer Morgan Le Cordon Bleu Culinary Arts
72 John Moseley Le Cordon Bleu Culinary Arts
73 Katherine Munson Le Cordon Bleu Culinary Arts
74 Sergio Navarrete Le Cordon Bleu Culinary Arts
75 Kevin Norton Le Cordon Bleu Culinary Arts
Kristina Opat Le Cordon Bleu Hospitality and Restaurant
Sallie Mae 76 Management
77 Ruth Pacheco Le Cordon Bleu Culinary Arts
78 Jennifer Poblete Le Cordon Bleu Culinary Arts Sallie Mae
79 Amy Portello Le Cordon Bleu Culinary Arts
80 D'Antonio Purefoy Le Cordon Bleu Culinary Arts Sallie Mae
81 Marcus Red Le Cordon Bleu Culinary Arts
82 Paul Roberts Le Cordon Bleu Culinary Arts
83 Lauren Root Le Cordon Bleu Culinary Arts
Christopher Roper Le Cordon Bleu Culinary Arts Sallie Mae; HICA Education
84 Loan Corporation; CCA
85 Thomas Roscoe Culinary Arts
86 Jordan Russell Le Cordon Bleu Culinary Arts
87 Mason Sager Le Cordon Bleu Culinary Arts
Scott Salazar Culinary Arts Sallie Mae 88
89 Alejandro Sanchez Le Cordon Bleu Culinary Arts Suntrust Banks, Inc.
Edward Sancho-Bonet Le Cordon Bleu Hospitality and Restaurant
90 Management
Jeremiah Sharlow Le Cordon Bleu Culinary Arts Sallie Mae 91
4
APPENDIX
No. Name Program Note Holder(s)
Sallie Mae; Wells Fargo
Matthew Sharpe Le Cordon Bleu Culinary Arts Bank, N.A.; Wells Fargo &
92 Company; Private
Academic Loans, LLC
93 April Slaughter Le Cordon Bleu Culinary Arts
94 Peter Siavenkov Le Cordon Bleu Culinary Arts
95 John Anton Smith Le Cordon Bleu Culinary Arts
96 Michael St. Lawrence Culinary Arts
Theresa (Stewart) Baking and Pastry Arts
97 Stapleton
98 Sean Sullivan Culinary Arts
99 Brooke Swopes Le Cordon Bleu Culinary Arts Sallie Mae
100 Tere Tangre Takemoto Culinary Arts
101 Diem (Doonan) Tang Le Cordon Bleu Culinary Arts
102 Christopher Taylor Le Cordon Bleu Culinary Arts Sallie Mae
103 Sterling Teran Le Cordon Bleu Culinary Arts
104 Jason Turner Le Cordon Bleu Culinary Arts Sallie Mae
105 Gabriel Uribe Le Cordon Bleu Culinary Arts
106 Sheryl Uy Le Cordon Bleu Culinary Arts
107 Sadie Velasquez Le Cordon Bleu Culinary Arts
David Sallie Mae
108 Vongkhotsombath Le Cordon Bleu Culinary Arts
109 Ada Silver Warfel Le Cordon Bleu Culinary Arts Sallie Mae
110 Byram Williams Culinary Arts
111 Tarisa Williamson Le Cordon Bleu Culinary Arts
112 Chelsea Wong Le Cordon Bleu Culinary Arts
113 Savanna Ybarra Baking and Pastry Arts
5
APPENDIX
No. Name Program Note Holder(s)
114 Anthony Yee Baking and Pastry Arts
115 Brian York Le Cordon Bleu Culinary Arts Sallie Mae
6
APPENDIX
No. Name Program Note Holder(s)
1 Karina Abarca Le Cordon Bleu Culinary Arts
2 Jose Aguilera Le Cordon Bleu Culinary Arts
3 Joshua Aiken Le Cordon Bleu Culinary Arts
LaShannon Alexander Le Cordon Bleu Hospitality and Restaurant
4 Management
5 Marco Alvarado Le Cordon Bleu Culinary Arts
Rhema Andrews Le Cordon Bleu Hospitality and Restaurant
6 Management
Janine Bartolotti Baking and Pastry Arts Sallie Mae 1
7
Threasa Belmares Le Cordon Bleu Hospitality and Restaurant
8 Management
9 Anthony Belzer Le Cordon Bleu Culinary Arts
10 Robert Booth Le Cordon Bleu Culinary Arts
11 Brandon Bowmer Baking and Pastry Arts Sallie Mae
12 Keith Bramwell Le Cordon Bleu Culinary Arts
13 Ryan Briar Le Cordon Bleu Culinary Arts
14 Peter Brookens Le Cordon Bleu Culinary Arts
15 Brian Bueno Culinary Arts
16 Aaron Callahan Le Cordon Bleu Culinary Arts Sallie Mae
17 Andrew Carroll Le Cordon Bleu Culinary Arts
18 Stacie Castillo Baking and Pastry Arts
19 Zachary Champlin Le Cordon Bleu Culinary Arts
20 Jaclynn Chavez Le Cordon Bleu Culinary Arts
21 Jeremy Clabough Le Cordon Bleu Culinary Arts Sallie Mae
22 Josh Cleveland Le Cordon Bleu Culinary Arts
1 As used herein, "Sallie Mae" includes SLM Corporation; Sallie Mae, Inc.; and SLM Education Credit Finance Corp.
1
APPENDIX
No. Name Program Note Holder(s}
23 Julie (Contreras) Perez Baking and Pastry Arts
24 Chad Cook Le Cordon Bleu Culinary Arts
25 Brett Cooper Le Cordon Bleu Culinary Arts
Jeffrey Cross Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
26 Chase Bank, N.A.
27 Steven Delatorre Le Cordon Bleu Culinary Arts
28 Ian Delph Le Cordon Bleu Culinary Arts Sallie Mae
29 Anthony DiLilio Le Cordon Bleu Culinary Arts
30 Lisa Duncan Le Cordon Bleu Culinary Arts
31 Zachary Farnes Le Cordon Bleu Culinary Arts
Miguel Garcia Le Cordon Bleu Hospitality and Restaurant
32 Management
33 Andrew Glassmacher Le Cordon Bleu Culinary Arts Sallie Mae
34 Jesell Gonzales Le Cordon Bleu Culinary Arts
35 Evan Gourd Culinary Arts
36 Charlene Gross Le Cordon Bleu Culinary Arts
37 Sean Gude Le Cordon Bleu Culinary Arts
38 Jimmy Halverson Le Cordon Bleu Culinary Arts
39 Stefanie Hockett Culinary Arts Sallie Mae
40 Andrew Huesca Le Cordon Bleu Culinary Arts
Denise Irons Le Cordon Bleu Hospitality and Restaurant
41 Management
42 Randy Jackson Le Cordon Bleu Culinary Arts
43 Sandra Jacobs Baking and Pastry Arts Sallie Mae
44 Matthew Jarvis Culinary Arts
45 Justan Johnson Le Cordon Bleu Culinary Arts
2
APPENDIX
No. Name Program Note Holder(s)
46 Ross Johnson Culinary Arts
47 Shiloh Jones Le Cordon Bleu Culinary Arts
48 Theresa Joyce Culinary Arts
Thomas Karopoulos Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
49 Chase Bank, NA
50 Sheldon Kohn Baking and Pastry Arts
51 Adam Konfrst Le Cordon Bleu Culinary Arts
52 Don LaBarbera Baking and Pastry Arts
53 Jean-Yves Le Du Le Cordon Bleu Culinary Arts
54 Trung Le Le Cordon Bleu Culinary Arts
55 Levi Lewis Baking and Pastry Arts
56 Alan livingston Le Cordon Bleu Culinary Arts
57 Rachel Lunzaga Le Cordon Bleu Culinary Arts Sallie Mae
58 Casey Lutz Baking and Pastry Arts
James Lyon Le Cordon Bleu Culinary Arts Sallie Mae; JPMorgan
59 Chase Bank, N.A.
60 Jeffrey Macha Le Cordon Bleu Culinary Arts
61 Britt Magnuson Le Cordon Bleu Culinary Arts
62 Christian Mancilla Le Cordon Bleu Culinary Arts
63 Jason Marmor Le Cordon Bleu Culinary Arts Sallie Mae
64 Jason Marshman Le Cordon Bleu Culinary Arts
Ashley Coffey Martin Le Cordon Bleu Culinary Arts Sallie Mae; US Bancorp,
65 N.A.
Marc Martin Le Cordon Bleu Culinary Arts Sallie Mae; The Education
66 Resources Institute, Inc.
67 Alicia McClain Le Cordon Bleu Culinary Arts
68 Corrin Mckellips Le Cordon Bleu Culinary Arts
3
APPENDIX
No. Name Program Note Holder(s)
69 Chadwick Mcwilliams Culinary Arts
70 Michael Moore Le Cordon Bleu Culinary Arts Sallie Mae
71 Jennifer Morgan Le Cordon Bleu Culinary Arts
72 John Moseley Le Cordon Bleu Culinary Arts
73 Katherine Munson Le Cordon Bleu Culinary Arts
74 Sergio Navarrete Le Cordon Bleu Culinary Arts
75 Kevin Norton Le Cordon Bleu Culinary Arts
Kristina Opat Le Cordon Bleu Hospitality and Restaurant
Sallie Mae 76 Management
77 Ruth Pacheco Le Cordon Bleu Culinary Arts
78 Jennifer Poblete Le Cordon Bleu Culinary Arts Sallie Mae
79 Amy Portello Le Cordon Bleu Culinary Arts
80 D'Antonio Purefoy Le Cordon Bleu Culinary Arts Sallie Mae
81 Marcus Red Le Cordon Bleu Culinary Arts
82 Paul Roberts Le Cordon Bleu Culinary Arts
83 Lauren Root Le Cordon Bleu Culinary Arts
Christopher Roper Le Cordon Bleu Culinary Arts Sallie Mae; HICA Education
84 Loan Corporation; CCA
85 Thomas Roscoe Culinary Arts
86 Jordan Russell Le Cordon Bleu Culinary Arts
87 Mason Sager Le Cordon Bleu Culinary Arts
Scott Salazar Culinary Arts Sallie Mae 88
89 Alejandro Sanchez Le Cordon Bleu Culinary Arts Suntrust Banks, Inc.
Edward Sancho-Bonet Le Cordon Bleu Hospitality and Restaurant
90 Management
Jeremiah Sharlow Le Cordon Bleu Culinary Arts Sallie Mae 91
4
APPENDIX
No. Name Program Note Holder(s)
Sallie Mae; Wells Fargo
Matthew Sharpe Le Cordon Bleu Culinary Arts Bank, N.A.; Wells Fargo &
92 Company; Private
Academic Loans, LLC
93 April Slaughter Le Cordon Bleu Culinary Arts
94 Peter Siavenkov Le Cordon Bleu Culinary Arts
95 John Anton Smith Le Cordon Bleu Culinary Arts
96 Michael St. Lawrence Culinary Arts
Theresa (Stewart) Baking and Pastry Arts
97 Stapleton
98 Sean Sullivan Culinary Arts
99 Brooke Swopes Le Cordon Bleu Culinary Arts Sallie Mae
100 Tere Tangre Takemoto Culinary Arts
101 Diem (Doonan) Tang Le Cordon Bleu Culinary Arts
102 Christopher Taylor Le Cordon Bleu Culinary Arts Sallie Mae
103 Sterling Teran Le Cordon Bleu Culinary Arts
104 Jason Turner Le Cordon Bleu Culinary Arts Sallie Mae
105 Gabriel Uribe Le Cordon Bleu Culinary Arts
106 Sheryl Uy Le Cordon Bleu Culinary Arts
107 Sadie Velasquez Le Cordon Bleu Culinary Arts
David Sallie Mae
108 Vongkhotsombath Le Cordon Bleu Culinary Arts
109 Ada Silver Warfel Le Cordon Bleu Culinary Arts Sallie Mae
110 Byram Williams Culinary Arts
111 Tarisa Williamson Le Cordon Bleu Culinary Arts
112 Chelsea Wong Le Cordon Bleu Culinary Arts
113 Savanna Ybarra Baking and Pastry Arts
5
APPENDIX
No. Name Program Note Holder(s)
114 Anthony Yee Baking and Pastry Arts
115 Brian York Le Cordon Bleu Culinary Arts Sallie Mae
6
Culinary Career Opportunities EducaUonalFoundaUon
A career in the restaurant and hospitality industry is a profession. Those who acquire professional credentials distinguish themselves, as being highly skilled, trained, motivated and career-minded. They make themselves immediate candidates for better pay and better jobs.
• Executive Chef • SousChef • Caterer • Catering Manager • Chef/Owner • Personal Chef • Garde Manger Chef • Pastry Chef • Banquet Chef • Butcher • Food &: Beverage Manager • Corporate Executive Chef • Food Writer • Food Stylist • Recipe/Cookbook Editor • CuJlinary Author • Culinary Trainer • Restaurant Consultant • Internet Chef • Television Chef • Radio Talk Show Host • Television Culinary Producer • Chotolatier • Restaurant Manager • Country Club Manager • Dietary Chef Supervisor • Foods Research &: Development • Restaurant Operations Manager • Event PlannerjManager • Sommelier
Exhibit 1
CCAP00000374
u..
CALIFORNIA CULINARY ACADEMY 625 Polk Street • San Francisco, CA 941 02 Toll-free 1-800-229-CHEF (2433) • www.baychef.com/dmi
Dear Matthew,
It's your last year of high school, and now is the time to start planning for your future. Imagine yourself as an executive chef at a trendy restaurant, a pastry artist with your own bakery, or a personal chef to the stars.
California Culinary Academy can make it happen for you. In 15 months or less, you could be working in the career of your dreams. Here's how:
• Learn from the best-Whether you're emolled in our Le Cordon Bleu Culinary Arts Degree Program or our Baking & Pastry Arts Certificate Program, you'll gain hands-on, practical experience that you can apply in your new career.
Career preparation-California Culinary Academy provides training in resume preparation and interviewing techniques, as well as career fairs, on-campus recruitment, and a job hotline exclusive to our students and alumni.
Financial aid assistance-Financial aid is available for those who qualify.
Matthew, take the next step· to having the prestige, independence, and personal rewards of an outstanding career today. Call our Admissions Office now, toll-free, 1-800-229-CHEF (2433) to enroll in our upcoming classes-spaces are limited so don't delay! Or fill out and return the reply slip below in the enclosed, postage-paid envelope.
;!: Sincerely,
~ BaJI/Uf q~ ~ ~ Barry Gordon, President
P.S. Matthew, our fmancial aid advisors will help you explore the options available to you, if qualified. Learn about federal grants and scholarships, or find out about government and private funding. Call California Culinary Academy for more information, toll-free, 1-800-229-CHEF (2433).
Please detach the corppleted reply slip and return it in the ~nclosed, postage'paid envelope.
CALIFORNIA CULINARY ACADEMY 625 Polk Street • San Francisco, CA 94102 Toll-free 1-800-229-CHEF (2433) • www.baychef.com/dmi
PHOl\E NUMBER
E-MAIL HS GRAD/GED YEAR
If the address below Is Incorrect, please cross it out and print your correct address.
0000001373
Matthew Shea 2805 S High St Denver, CO 80210-6320
111111111111111111111111111111111111111111 h 111111111111111111
Exhibit 2
Yes! TELL ME MORE ABOUT. o Le Cordon Bleu Hospitality & Restaurant
Management Degree Program o Le Cordon Bleu Culinary Arts Degree
Program o Baking & Pastry Arts Certificate Program
My friend might be interested in learning about California Culinary Academy:
NAME
HS GRAD/GED YEAR
PHONE NUMBER
Carr todatf 1 1-800-229-CHEr'(2433)
F2417C cs @DMID2417C
CCAP00001027
•
625 Polk Street· San Francisco, CA 94102 • ph: 1-888-222-1771 • www.californiaculinary4rne.com
Dear «FIRST»,
Think about your clIrrentjob ... ifit isn't bringing you the rewards and future you deserve, it's time for a change. With the right preparation, a rewarding culinary or hospitality career could be a key to a better future.
For a moment. imagine yourselfworking as a chef ill afine restaurant, a popular resort, aboard a cruise ship, or maybe even in your own establishment.
California Culinary Academy can help make it happen. In as few as 15 months, you could be working in an exciting career. The renowned Le Cordon Bleu Programs can give you the skills and prestige you need for success in the culinary arts.
With Le Cordon Blell:~ reputationfor excellence. it s no surprise that 0111' graduates are sought "fier byfine establishments throughout the area.
«FIRST», also keep in mind that financial aid is available for those who qualify, so you don't have to let finances stand in the way of your dreams. Make the first move toward a promising future. Call now, toll-free, 1-888-222-1771. Or, if you prefer, fill out and return the attached reply slip ill the enclosed, postage-paid envelope today.
Sincerely,
!lnnq~ Ann Gibson, President ()
L--,.,-____ --" ij;
P.S. «FIRST», get ready for the exciting and rewarding lifestyle you deserve by getting the skills you need to succeed. CaU California Culinary Academy today, toll-ti'ee, 1-888-222-1771.
«FIRST» «LAST» «ADD» «CITY», «ST» «ZIP»
IS DM 520464A-E • Exhibit 3
. ~.:-... ".
~t:{ : California Culinary Academy . <'i: Lc Cordon BI"" Program ~".:.: S;lIl Franci.,co
®The Le Cordon Bleu logo is a registered trademark of Le Cordon Bleu. BV.
625 Polk Street San Francisco. CA 94102 ph: '-888-222-1771 www.californiaculinary4me.com
YES! Tell me more about the items I've indicated below:
[01] Le Cordon Bleu Culinary Arts
[02] Le Cordon Bleu Hospitality
& Restaurant Management
[03] Baking & Pastry Arts
For information about any of the above selections, please enter tne cooes here .
840541
CCAP00001048
[
i
! ~
! t i 1
! The Academy student has access to endless
opportunities for both personal and professional
enrichment. There really is no other city quite
like the City by the Bay.
THE ACADEMY'S FACILItiES
Historic California Hall, situated at 625 Polk
Street in San Francisco's Civic Center district, is
the main location to the. Academy's kitchens,
lecture classrooms, and restaurants. This
landmark facility includes baking and pastry
kitchens, confiseries, garde manger kitchens,
butcheries, professional production kitchens, and
demon~tration kitchens. Full-service, student
staffed restaurants serve both lunch and dinner.
The student gains hands-on experience in the
production and pastry kitchens that are designed
to support the restaurants and retail outlet. Other
distinctive classroom facilities at the Academy
include a Basic Skills Laboratory designed to
facilitate the development of fundamental culi
nary skills, a computer classroom with a network
of individual student work stations for learning
menu layout and recipe costing, and the
Academy Library which houses an extensive
WIIHI W{ An IS AS IMPORTANT AS WHO W( All
inventory of current culinary periodicals, texts,
and videos to supplement classroom and kitchen
instruction. For the student and visitor to the
Academy, our Retail Store offers an assortment of
take-out foods, culinary tools, cookbooks, and
accessories. Additional educational facilities are
conveniently located at 700 and 735 Polk Street.
VALUE AND AFFORDABILITY OF THE ACADEMY
A culinary education can open doors to a variety
of exciting and rewarding career opportunities.
Become an executive chef; own your own
restaurant; work at prestigious hotels, spas, and
aboard cruise ships; or even write for a food
magazine- the options are numerous. The
Academy's comprehensive training enables the
student to work with any cuisine in any kitchen
and to acquire a professional versatility that
survives throughout a changing and diverse career
path. The required three-month externship that
rounds out the Culinary Arts Program at the
Academy gives the student a true taste of the
profession. This experience provides the opportunity
to put Academy training into practice and at the
same time enhances the student's exposure to
7
Exhibit 4
excellent career opportunities
limits. Job leads and career assistance
to each enrolled student and
education and the Student Finance
available to assist in finding various
The Academy takes each student's
the culinary arts seriously as an active
helping achieve one's culinary aspi
CCAP00000650
Mmmmm,
life is good! LE CORDON BLEU SCHOOLS.
LE CORDON BLEU SCHOOL.S NORTH AMERICA
CAN F'REF'ARE YOU FOR THE F'RESTIGIOUS
CULINARY CAREER YOU'VE ALWAYS WANTED.
TRAIN TO BE AN EXECUTIVE CHEF, SOUS
CHEF, PASTRY ARTIST, RESTAURANT OWNER
OR FOOD AND BEVERAGE DIRECTOR.
LE CORDON BLEU IS THE WORLD'S PREMIER
NAME IN CULINARY EDUCATION.
CALL TOLL FREE
.888.876.9999 EXT.433
OR ENTER PROMO CODE 433 AT
www.topculinary.com • SAN FRANCISCO, CA • F'ORTLAND, OR • CHICAGO, IL • ORLANDO, FL
• AUSTIN, TX • DOVER, NH • PASADENA. CA • SCOTTSDALE, AZ
• PITTSBURGH, PA • MENDOTA HEIGHTS, MN • LAS VEGAS, NV
CAREER EDUCATION CORPORATION 2895 GREENSPOINT PARKWAY.SUITE 600. HOFFMAN ESTATES. IL 6019!5
Exhibit 5
CCAP00001057
rth its global cuisine curriculum, distinguished faculty
and San Francisco location, the California Culinary
Academy offers aspiring professional chefs the
perfect setting to receive their culinary training.
+ Begin a career at
the nation's premier
culinary academy,
located in the
produce, wine and
culinary capital
of the world.
For more
information call
1-800-229-CHEF, ext 236
or visit our website at
www.baychef.com
+ Rigorous and comprehensive, this
accredited degree program prepares
students for professional entry into
all aspects of the culinary profession.
~\II~ CALIFORNIA ~C~ CULINARY ~ ACADEMY
THE RESOURCE TO THE FOOD INDUSTRY
Exhibit 6
CCAP00001030
o ~ "'U o o o o ......
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Exhibit 7
Exhibit 7
.......... ,<:: ,:.;,: .. : .. :.:., <::::~~~;
You are Here: Top Culinary School Directory> Home Page
Welcome to the Top Culinary School Directory
If you have a passion for food, enjoy working with other people and thrive on the excitement of the culinary industry, you have come to the right place: The Top Culinary School Directory. This site gives you access to renowned curricula such as the prestigious Cordon Bleu Culinary Program, which can be your ticket to becoming an executive chef.
And it's not just about the limelight. Here are several reasons why getting a culinary degree also makes good business sense:
-Job openings in the food industry, unlike most other sectors, are expected to remain plentiful through 2008 (according to the Occupational Outlook Handbook)
-The job growth rate for the food industry is expected to be 10-20% each year (according to the Occupational Outlook Handbook)
-The culinary field can be quite lucrative - executive chefs earn an average salary of $52,326 to $78,011 (according to Salary.com)
-It makes sense to get a culinary degree: The difference between a cook's salary ($24,OOO) and a beginning executive chefs salary ($58,OOO) is $34,000. That's a difference of over 140% (according to Foodservlce.com)
http://www.culinary-arts-school-directory.comJ
Exhibit 8
CCAP00000453
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119-10764PCCABo~etitFNLad 11/6r07 4:59 PM Page 1
Move up to management!
n-(011'Olr110 .(UllnUIY ,\COdC.r1Y .. Introduces Lc (ordo~ 8ku
HOSPIIMIIY IS. RfS1AURMH ~\ANAG!)\~NI PROGRMo\
Earn your associate degree for hospitality and restaurant management
in less than a year for positioJlS in:
• Restaurants • HotelslResortS • Catering • Cruise lines • Corporate facilities • Casinos
~",C\lI.Il\Io1..tJ-
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1800.229.2433 ~.bay(hefconn
625 Polk Street· San Francisco, CA 94102
Exhibit 9
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CCAPOOOO 1058
Three great programs - one great school! We are prood to annoonce oor affiliation with the world famws Le Cordon Bleu French cooking
institute. This educational partnership gives Academy students the finest in North American and European culinary arts and hospitality training available today.
Le Cordon Bleu Culinary Arts Degree Program Earn your associate's degree in this professional program that emphasizes hands-on skill development and
practical application of both classical and modem techniques. Rigoroos and comprehensive, this program prepares students for a variety of exciting culinary positions: • Executive Chef· Sow Chef· Caterer· Chef Instructor' Private Chef' Restaurant Owner
Le Cordon Bleu Hospitality & Restaurant Management Degree Program Earn your associate's degree for an upwardly mobile career in the dynamic hospitality industry. Foodservice and lodging managers accoont for the largest number of managerial employees in the coontry. Our world-class training can prepare you for a broad range of hospitality and restaurant management positions:
• Hotel Manager· Restaurant Manager' Resort/Spa Director· Cruise Line Director
• Casino/Gaming Manager' Director of Food & Beverage· Special Events Manager
Baking & Pastry Arts Certificate Program W you are interested in a professional baking and pastry arts career, oor intensive program can
prepare you for a delicioos future. Our dasses emphasize a hands-on approach of fundamental techniques and ingredients. Classes cover breads, dooghs, pastries, cakes, candy, decorative
techniques, and more. Prepare for a wide variety of positions: • Executive Pastry Chef' Pastry Manager' Baker' Caterer· Food Styllst
For a free brochure, call now:
800.229.CHEF (2
www.baychef.com
• Finandal aid available for those who qualify
• Job placement assistance and networking
California Culinary Academy ~5 Polk Street San Francisco, CA 94102
Exhibit 10
4 )
CCAP00001060
ASSOCIATE OF OCCUPATIONAL STUDIES DEGREE IN LE CORDON BLEU HOSPITALITY & RESTAURANT MANAGEMENT
Imagine your office is a busy restaurant, or a posh hotel, or on island resort. Our Assodate of Occupationol Studies Degree in Le Cordon Bleu Hospitality & Restaurant Management can give you the knowledge and skills ta su((eed in one of the fastest growing industries. This 45-week, comprehensive wurse of study combines sound managerial theory with practical hands-on training. Plus, our extern ship program that puts you under the supervision of a hospitality professional can give you valuable exposure to your chosen field. Whether it's managing a hotel or restaurant- or a resort, casino, cruise ship, or spa - you should have what you need to tockle any professional entry-level hospitality position.
CAREERS IN THE CERTIFICATE IN BAKING & PASTRY ARTS If you're interested in professional baking and pastry, our certificate program can be your recipe for su((ess. This 30-week program includes a comprehensive study of baking and pastry arts with an emphasis on hands-on application of fundamental techniques. (lasses cover breads, doughs, pastries, cokes, wndy, decorative techniques, and more. Our Certificate in Baking &
Pastry Arts can prepare you for numerous positions. Become a Pastry Chef, Pastry Artist, Baker, Caterer, and more!
.10. CHAZZALYNDE MATHEMEIER (2002 eCA GRADUATE)
"My CCA culinary educotion is Ihe mosl essential element in my skill set. 11 taught me how to be motive wilh food, how to communicate with culinary peers and how 10 gather knowledge aboullocal culinary tastes."
Exhibit 11
CCAP00001086
0xiernshlps • Students round out their education
with a twelve-week externshipat the end of their senior term.
• Externship sites have included hotels, restaurants, resorts, healthcare and a host of others.
• A majority of the Academy's externships result in full-time employment positions.
• Externship sites are developed through sponsor inquiry and industry outreach. .
:lob :?facemeni • A valuable resource for employers
seeking to fulfill staffing needs at all levels.
• The Academy links employers with graduates and students.
• The Academy has an exceptional placement rate of graduates within the Industry.
• Placement services are extended to Academy graduates throughout their career.
For more information, call our Externship and Placement Staff,
415-771-3500
CAUFORNIA CUUNARY ACADEMY· 625 POLK STREET • SAN FRANCISCO, CA 94102 www.baychef.com
Exhibit 12
CCAP00001029
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~ "U o o o o ...... "'-J (Jl o
Exhibit 13
Financing Your Education
;tl n I nvestment in CYour Puture . ..... .
~ ..--:0 ..c x W
CCAP00001794
CONGRATULATIONS!
I'm your guide.
You've chosen a wonderful school.
You're making a great investment in your future.
Today, we'll start the process of finding out how you can pay for your education.
v ..-..... :0 E x w
CCAP00001795