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2 Investigation Uncovers School Scam

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2 Investigation Uncovers School Scam

CHICAGO (CBS) ― Jobless rates are climbing and more people are signing up at trade schools hoping for a new career. But students at one school complained to CBS 2 Investigator Pam Zekman that they were out thousands of dollars and were still caught in the unemployment trap.

It sounds like a good trade to learn - installing and servicing heating and air conditioning units.

"I needed the help to find a job," said Gerhardt Facko.

Facko, a recent high school graduate; Casey Hurn, a maintenance man; and a 50-year old who lost his business say they were misled by the same pitch that emphasized job placement.

"In today's economy, that means a lot," said the 50-year-old former student.

But a former employee for Environmental Technical Institute in Blue Island says it was a deceptive pitch.

"It's a joke, it's a game. It's not real," said Brenda Hudson.

We sent a CBS 2 Investigative Producer posing as a potential student to hear the pitch from an ETI salesman.

"He said we would be taking things apart, learning how things work, troubleshooting problems," said Dan Blom.

In reality…

"They don't let you touch any of it. They point to things. Period. But they don't let you touch it," said one student.

He estimates his class got less than half the hands on training that was outlined in the curriculum.

"We're not getting what we paid for, I don't know how that could not be fraud," he said.

If a service technician has not been properly trained to work on boilers, furnaces and air conditioning units, the results could be catastrophic.

"The worst that could happen is bodily death by carbon monoxide or an explosion from a boiler that's not properly inspected," said John Stern, Mechanical Contractors Association.

Stern recommends attending the Pipe Fitters' Union training program where in addition to classes, students get three years of paid on-the-job training.

"Hands-on training is everything in this business," Stern said.

So what about ETI's job placement rate?

"He bragged about how they had a 99 percent placement rate for their students," Blom said.

Gerhardt Facko's father is very angry.

"In this job market, how can they possibly promise that?" said Gary Facko.

Former ETI job placement counselor Brenda Hudson says they shouldn't.

"What I would get from contractors were basically, 'No, I don't want those guys here in my business.' ETI don't teach them anything. They are not learning heating and cooling," Hudson said.

That's what Casey Hurn was told.

"The guy told me that I don't know enough," Hurn said. "And I'm back to square one."

Gerhardt Facko got one job through ETI.

"All I did was clean swimming pools," Facko said.

Now his parents are stuck paying off more than $10,000 in loans.

"I think the school should give us our money back," said Gerhardt's father Gary Facko.

The only job lead ETI's placement counselor gave the 50-year-old former business owner – "draperies, the installation of draperies," he said.

He confronted the school director about it.

"You're giving me a lead to hang draperies and his answer was 'she's new,'" he said.

ETI's school director Moshen Davanipour said: "I have no idea where these accusations come from. I have no idea."

In response to other student complaints who said they were mislead about the 99 percent job placement rate, Davanipour said "I would be glad to talk to you off camera."

He never did. Now many students are left with ETI certificates and loans to pay off - but no jobs.

"I have no idea how I'm gonna pay this back," the former business owner said. "I have no idea."

In August the family-owned ETI was sold. The new owners declined to answer our detailed questions. Instead a spokesperson said they are evaluating the school's staff, equipment and curriculum and pursuing their own internal investigation into the questions we raised.

To file a complaint about ETI or other trade schools, you can contact the Illinois State Board of Education by sending an e-mail to pbvs@isbe.net OR by mailing a complaint to 100 W. Randolph St., Ste. 14-300, Chicago, IL 60601.

If the school is approved for federally subsidized student loans, you can also file a complaint with its accrediting commission. In the case of ETI, it is the Accrediting Commission of Career Schools and Colleges of Technology.

To learn more about the Pipe Fitters' Local 597 Training Center, click here.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)


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