Philip G. Faden, 49, former vice president of Salt Lake City College, has been sentenced to six months in prison for fraud involving student loans and grants.
Faden's sentencing Wednesday by U.S. District Judge J. Thomas Greene closes the book on financial improprieties in the late 1980s at the now-defunct Salt Lake City College and the Hollywood Beauty College.Stephen Collins, former college owner, was sentenced in August 1992 to five months in a halfway house and five months home confinement and was ordered to repay $159,000.
Prosecutors said that when students dropped out, the college failed to make the refunds to banks and lending institutions for the education loans they had underwritten.
Some of the money was owed the Education Department and some money was owed ex-students, some of whom had to pay the banks when the college failed to do so.
"I really feel terrible about what happened to those people," said Faden, who also was sentenced to six months home confinement and ordered to make $293,141 restitution.
Faden, who now lives in Texas, has heart, respiratory and back problems that have rendered him disabled and there was not a lot of confidence he will be able to pay the restitution.