Law Offices of John L. Fallat
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IME Lawsuit Information
Law Offices of John L. Fallat
     On February 13, 2012, the California Department of Consumer Affairs - Bureau for Private Post Secondary Education ("BPPE") issued an Emergency Order against the Institute of Medical Education ("IME") located in San Jose and Oakland in which IME was ordered to cease enrollment of new students in all of its programs,  cease instruction for all of its programs, and cease collection of tuition or fees for all of its programs.  You can review a copy of this decision, which was reached after IME had an opportunity to respond, by clicking here.   BPPE then followed-up with a formal "accusation" against IME which you can view by clicking here.   The hearing on the accusation took place June 21, 2012, in Oakland, CA.  You can click here to find the specifics of the time and location, and the identity of the Deputy Attorney General.   BPPE informs us that IME surrendered its license on July 19, 2012.

     Our law office became aware of the conduct of IME and its principals shortly before the Emergency Order was made.  As a result of our investigation and that of the BPPE, we proceeded to file a class action complaint on behalf of all students who attended IME from February 17, 2008 to the present alleging that IME violated the California Education Code, engaged in unfair business practices, etc.  The lawsuit demands that all funds collected by IME be refunded, all loans be cancelled, and the students be compensated for their out-of-pocket expenses for having attended the school.  A copy of the first amended complaint can be viewed by clicking here.  A case management conference is currently scheduled for November 16, 2012. 

     Please review the options provided by the BPPE for the cancellation of your loans without the involvement of our office by clicking here.  When you go to this site, you can view a list of potential schools by clicking at that location to determine if you can transfer your credits earned from IME.  Unfortunately, we are not optimistic that any units from IME are transferrable.  We are unaware of any schools accepting any transfer credits from IME.  If you know of any, please advise us immediately by sending an email.
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     Furthermore, you can click through to the Federal Student Aid link from the BPPE site to determine if you are eligible for a discharge of your loan and perhaps other remedies.  Finally, students enrolled at the time of the closure or within 60 days of the closure may be eligible for reimbursement for their losses through the Student Tuition Recovery Fund (STRF).  You can download a STRF claim application by clicking through the link on the BPPE website  (near  the end of the "important information" page).  You may also email Shane Scholesser of  the Department by clicking on his email address on that page.

     Once again, we are not assisting any of the students with filling out the applications.  You must do them yourselves.  The civil complaint is filed on behalf of all the students in an attempt to cancel any outstanding loans, obtaining refunds, obtaining reimbursement for out-of-pocket expenses, etc, that cannot be recovered through the abovementioned government programs identified on the BPPE website.

     Unfortunately, it appears that IME, Sunil Vethody, and Bindu Vethody have little or no assets pursuant to their Court filings in this case and others (see the links-application-waive fees).  Sunil Vethody has an active criminal case being pursued against him in a matter unrelated to the operation of IME.  His next court date is October 29, 2012.  Please navigate to the Services page of this website to see scanned court documents and upcoming court dates pertaining to the civil case.

     The firm investigates and pursues claims against for-profit schools and colleges which make deceptive promises to students.  State and Federal laws prohibit unfair and deceptive practices and the issuance of false academic credentials.  If you have questions or want more information about the IME lawsuit, please email the firm by clicking here.  At this time we request that IME questions be made by email and not by telephone due to the number of telephone inquiries received.  The Law Offices of John L. Fallat also has a facebook page whereThis Order represents a defeat in IME’s efforts to obtain money from which it could pay creditors. You will note that at page 5 there are already 7 judgment creditors identified that would be ahead of our purported class in terms of ever collecting anything from these defendants. The likelihold of recovery on this case has just gone from highly unlikely to dismal”. you may learn more about the firm and check for updates.  

   The case was reassigned a few months ago to a new Judge, Peter Kirwan, in Department 1 of the Santa Clara Superior Court.

     The next case management conference was recently re-scheduled for August 22, 2014.  Our case has been consolidated with another case filed against IME (Case No. 112CV219838) and there will be one trial for both cases since the issues are nearly the same.  There will be a pre-trial conference on February 11, 2105.  The pre-trial conference is a meeting between the lawyers and the Judge to discuss the logistics of the trial.  A Settlement Conference will take place on March 4, 2015.  The trial is set for March 9, 2015. 
   
​       IME is involved in a federal court case against the former accreditation agency, Western Association of Schools and Colleges.  An Order was recently issued against IME in that case.       This Order represents a defeat in IME’s efforts to obtain money from which it could pay creditors. You will note that at page 5 there are already 7 judgment creditors identified that would be ahead of our purported class in terms of ever collecting anything from these defendants. The likelihold of recovery on this case has just gone from highly unlikely to dismal”.