Story Published:
Aug 17, 2005 at 2:13 PM PDT
Story Updated:
Aug 31, 2006 at 2:02 AM PDT
SPOKANE - Federal officials are investigating an
alleged Spokane-area diploma mill that might be providing
fraudulent degrees that terrorists could use to enter the United
States, according to court documents.
Half the "degrees" sold by Saint Regis University and online
universities were sold overseas, a majority to "students" from
Saudi Arabia, the documents filed Monday in U.S. District Court
said.
The documents don't say how many degrees were sold overseas, but
they contend the operation based in Spokane and northern Idaho
"made millions" in the past few years.
Federal agents have targeted Steve and Dixie Randocks of Spokane
in an eight-month investigation that is outlined in the documents.
The Ra ndocks' home in Colbert, just north of Spokane, and their
business office were among five locations in the Spokane area
searched last week by a multi-agency federal and state task force,
led by the U.S. Secret Service
Court records show that a Liberian diplomat based in Washington,
D.C., was soliciting cash bribes from the Randocks and their
associates based in Spokane, Post Falls, Idaho, and Arizona.
The Liberian Embassy official demanded the bribes in exchange
for lining up "accreditation" for Saint Regis University and
other online schools and for arranging payments of $50 to $100 a
month to Liberian educators who would pose as "faculty members"
for the online universities, the documents said.
There have been no arrests, and no criminal charges have been
filed.
The federal task force is looking for evidence of conspiracy,
wire and mail fraud, money laundering, bankruptcy fraud, income tax
evasion and engaging in "prohibited foreign trade practices."
The Spokesman-Review newspaper of Spokane reported Tuesday that
sources told the newspaper that foreigners who purchased bogus
online degrees could be eligible for "H1-B" visas, using their
educational backgrounds as reasons for legitimate entry into the
United States.
During the investigation, an undercover Secret Service agent
using the name "Mohammed Syed" applied for a college degree from
James Monroe University.
The applicant, court documents say, filled out an online
application, claiming he had obtained "multiple hours of training
in chemistry and engineering" as a member of the Syrian Army.
Syed said he was in the United States on a visitor's visa, "but
wanted to quickly obtain college degrees so he could find
employment and obtain a H1-B visa to remain in the United States,"
the documents said.
Within a month, the operators of the bogus online university
responded by e-mail, telling Syed he could purchase college degrees
in chemistry and environmental engineering for $1,277.
Richard Novak, of Peoria, Ariz., is identified in court
documents as an associate of Dixie and Stephen Randock.
Novak told an undercover agent that the Randocks' three main
online universities, Saint Regis, Robertstown and James Monroe,
"have made millions of dollars over recent years."
Agents also searched Novak's home in Arizona and a business
office in Post Falls, used for shipping diplomas.
They also searched a stamp works in Spokane operated by Blake
Carlson. Documents seized in the search show the Hillyard-area
businessman has conspired with the Randocks, listing himself as the
"dean of studies" of Robertstown University, and "provost and
chief academic officer" for Saint Regis University.