Two valley beauty schools shut down, 350 students affected

Marinello Schools of Beauty in five states have been closed by the U.S. Department of Education for allegedly making false statements to students about costs and employment opportunities. About 350 students in Las Vegas have been affected by the closure.

Two beauty schools in Southern Nevada and one in Reno have been closed by the U.S. Department of Justice for allegedly making false statements to students and violating multiple financial provisions of Title IV of the Higher Education Act.

They are part of the regional closure of 56 schools operated by Marinello Schools of Beauty in California, Nevada, Utah, Kansas and Connecticut.

Two valley schools with a combined enrollment of about 350 students have closed. They are at 5001 E. Bonanza Road in Las Vegas and 4451 E. Sunset Ave. in Henderson.

In a letter dated Feb. 1, the Department of Education said Marinelli schools were not in compliance with Title IV of the Higher Education Act of 1965, stating, in part, " the department has concluded that Marinello has failed to adhere to a fiduciary standard of conduct, failed to comply with critical Title IV program requirements, failed to meet Title IV standards of administrative capability, and made numerous misrepresentations to students."

A letter to students posted today on the Marinello website from chairman and CEO Rashed Elyas says, in part, "We want you to know that we did everything in our power to avoid this unfortunate conclusion and keep your school open. Unfortunately, the Department of Education's unprecedented and unfounded actions left us with no other option except to close our schools.

"It is with great sadness and regret that we must inform you that effective Thursday, Feb. 4 (Calif., Nev. and Utah) / Friday, Feb. 5 (Conn. and Kan.), Marinello Schools of Beauty will cease operations and that your campus will be closed.

The letter said meetings will be held for students next week to explain their options to continue their education and to receive their records.

In its letter to Marinello, the Department of Education says Marinello illegally disbursed Title IV money by fabricating high school diplomas, the company callously disregarded students financial need, imposed excessive overtime charges and that Marinello misled students regarding key elements of their educational programs and financial charges, including assessing students between $2,500 and $2,750 for books and supplies along with other charges.

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