Pharmacy college
assets frozen

The court order comes
amid state accusations
of financial irregularities

A state court has temporarily frozen the assets of the Hawaii College of Pharmacy in Kapolei and its founders at the request of the state Office of Consumer Protection.

Investigation details The state Office of Consumer Protection released new details yesterday from its investigation of the Hawaii College of Pharmacy and its founders, Denise Criswell and David Monroe. According to the affidavit of a state investigator: » Monroe paid himself a salary of $500,000. » As school started last fall, Monroe paid more than $500,000 to buy a luxurious home near Louisville, Ky. » Criswell conveyed property in Las Vegas into the name of her husband in June. » Plans to develop a campus in Hawaii have stalled because Monroe and Criswell have not financed the project.

Circuit Judge Sabrina McKenna issued the temporary restraining order against the college yesterday, pending a hearing on a request for a preliminary injunction scheduled for next week. The temporary order also prohibits disposal of any of the college's records.

The state, which is suing the school, is seeking to force the college and its founders to return the $28,000 tuition that many students paid to attend the school last year. Unless the assets are frozen, the state argues, the students might not get their money back.

"Defendants' assets must be frozen immediately to prevent the dissipation of these assets during the course of this litigation and to protect their ultimate availability for consumer redress," the consumer protection agency said.

In a brief written statement, H.A. Hasan, dean of the Hawaii College of Pharmacy, said, "It is unfortunate that the (office) has chosen to take this drastic action. We look forward to the scheduled court date for the motion for preliminary injunction."

The order against the troubled startup college, and founders Denise Criswell and David Monroe, follows a suit filed last month by the consumer protection office. The state alleges the college violated state law governing unaccredited colleges, and engaged in deceptive trade practices by misleading students about the school's accreditation, affiliations, class size and plans to build a campus.

Capping a tumultuous year, during which several students have said the school broke promises made to them, the college announced in July that it would hold back more than half of its inaugural class of 240 students, regardless of whether the students had passed their courses. The college said the move was meant to satisfy requirements of the Accreditation Council for Pharmacy Education, but the announced plan caused simmering tensions to boil over.

The consumer protection agency has alleged the plan amounts to a systematic breach of contracts because students had signed up for a three-year doctoral program and were not told they might have to repeat a year even if they passed their courses. Two dozen current and former students have filed official complaints against the school with the Office of Consumer Protection.

The restraining order came alongside documents filed yesterday by the state that provide fresh details of allegations against the college.

Many of the new details come from the affidavit of James Dooman, who investigated the college for the state. Among other things, Dooman's affidavit states the following: