The now-defunct Globe University and the Minnesota School of Business filed for federal bankruptcy protection Thursday, just two weeks after the state Supreme Court ruled more than a thousand defrauded former students could get tuition refunds.
In court documents, leaders for the closed schools said the institutions had thousands of creditors that were owed as much as $50 million in debts and less than $500,000 in assets. Those creditors include about 1,200 students who attended the schools’ criminal justice programs.
Earlier this month, the Minnesota Supreme Court ruled that all students who attended that program could seek refunds for tuition and other education expenses. The schools had fought to limit the students owed refunds to the 15 who testified during a 2017 fraud trial.
In September 2017, a Hennepin County judge found the schools had defrauded students by leading them to believe completing the criminal justice program would help them become police and probation officers.