The tattered remains of what was once Dream Center Education Holdings will continue to be administered by a controversial receivership, a federal judge has decided.
Until the college chain imploded on Friday, Dream Center owned Art Institute and Argosy University campuses around the country. Those colleges had long operated as for-profit universities until Dream Center — a Christian nonprofit — purchased them more than a year ago.
Dream Center entered receivership in January as its financial problems mounted. The court-appointed receiver, Mark Dottore, has been criticized by student groups for failing to do enough to protect the tens of thousands of students who attended Dream Center campuses. In recent months, Dream Center improperly kept millions of dollars in financial-aid money that belonged to students. Dottore has denied any involvement in the wrongdoing.
On Monday the U.S. Department of Justice joined the anti-receivership chorus, and asked a federal judge to move the now-defunct college chain to bankruptcy court.