An official involved with two Utah colleges has been charged in federal court with misusing more than $217,000 from the schools.
Philip G. Faden worked as executive vice president of Salt Lake City College and as a paid consultant for Hollywood Beauty College during the alleged thefts.A complaint filed Friday in U.S. District Court alleges Faden took money given to the schools by the U.S. Department of Education for student financial aid.
When students with the aid dropped out or were expelled, the money was not returned, federal prosecutors contend.
At SLCC, Faden ordered secretaries in 1988 to prepare letters with refund checks for the banks that had made the loans, the charges state. But the letters were never sent.
While at Hollywood Beauty College in 1989, he allegedly ordered the owner to divert $54,000 from a financial-aid account to pay taxes and the payroll. He later had an additional $21,000 diverted, prosecutors said, for the same purposes.
More than $70,000 in additional federal funds given to the schools for scholarships and grants also were not returned, the charges allege.