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.
     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.

     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.  The trial date previously set for March 9, 2015 has been vacated.  The court did this by Order dated January 15, 2015.  This was done so that the Western Association of Schools federal case could be decided first.  That case has been decided in favor of Western Association of Schools.  There had been a possibility that IME would receive money if IME won that case, and that money could have been used to satisfy the claims in our case.  Since IME did not win, it has filed for bankruptcy protection against everyone who has sued it.  Notices to creditors will be sent out in the Bankruptcy case.  This information will be provided on this site when we receive it.

  PLEASE SEE the attached Decision made by Department of Consumer Affairs, Bureau for Private Postsecondary Education regarding IME.  This decision became effective January 2, 2014.  To summarize, the Bureau found that IME made changes to its program beyond the approvals it received to operate, it falsely advertised its accreditation, it defaulted on student enrollment agreements and failed to pay student refunds, it failed to properly maintain student records, it failed to employ the correct number of faculty and staff, it failed to keep proper financial records, it failed to collect and remit student tuition recovery fund assessments, it failed to notify the Bureau of an educational program closure, it committed dishonest acts, failed to provide students with a school catalog, and failed to make records and/or transcripts available to students, among other things. 

Because of the above findings, IME's approval to operate was revoked, IME was ordered to provide official transcripts to students, IME was ordered to pay restitution to students, and to pay investigation costs and attorney fees to the Bureau.