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Alabama threatens to pull university license
Ed DugganAlabama officials are threatening to revoke the license of Barrington University, the flagship school of Virtual Academics.Com (OTC BB: VADC) of Boca Raton.
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The company failed to notify Alabama that the university, which is registered and incorporated in the state, changed ownership in January. When a state inspector checked, Barrington University also had moved out of its listed headquarters at A&S Answering & Secretarial in Mobile.
Official scrutiny of the virtual learning conglomerate comes on the heels of a $408,546 year-end loss for the dot.com company, according to the firm's most recent SEC 10(k) filing.
The Business Journal obtained a copy of a warning letter from Dr. Eddie R. Johnson, Alabama's assistant state superintendent of education, to Robert K. Bettinger, Virtual Academics' $10,800 a year chairman and president of Barrington University.
In it, Johnson states no mention was made of the January ownership change when the license was renewed in May.
"Please immediately advise our office in writing of the status of Barrington University with regard to its ownership," Johnson wrote. "If the representation is true that a transfer of ownership has occurred, the State Department of Education will immediately move to revoke the private school license issued to Barrington University."
Alabama law requires a review for schools that undergo transfer of ownership to determine that minimum standards remain in effect.
"If I do not receive a timely response, I will take prompt action to revoke the private school license for Barrington University," Johnson said.
Bettinger said he would prepare "an appropriate response."
Virtual finance
In February, Virtual Academics negotiated a private placement of 2.2 million shares for $990,000 to Gilder Funding Corp., 12000 N. Bayshore Drive, Suite 210, North Miami. A reporter visiting the address found a residential condominium.
