In early 2003, I began an extensive search for a flight school to pursue my dream of becoming a commercial airline pilot. After much consideration, I made the decision to enroll at the Sierra Academy of Aeronautics in Oakland, CA. In June of 2003, I left my job at Southwest Airlines in Los Angeles and moved to Oakland to attend Sierra.

Prior to enrolling I met with a financial aid adviser at Sierra, who advised me that, since I had my undergraduate degree, I was not eligible for any federally funded grants or loans. She then suggested that I apply for a Key Alternative Loan to cover my training and living expenses. With limited options to consider, I took out a $55,000 educational loan from Key Bank. Disbursements were to be sent directly to the school and held in an account for me. Training costs would be automatically taken from the account, and monthly disbursement checks would be issued to cover my living expenses.

Upon enrollment I signed contracts which specifically showed that the money was to be sent to an account under which withdrawls were to be made after each expenditure I incurred. The contract stated four times that "...any unobligated funds on account at completion or termination of training [would] be returned within 30 working days to the student's permanent home country address, bank in
country of origin, or sponsor, as appropriate".

In December of 2003, Sierra Academy shut its doors to the public and its students without any type of explanation. Finally, a notice was sent to the students stating that the school would be closed until January 10, 2004 for renovations. During this time, I decided that Sierra was not right for me and looked into other schools in the Southern California area. January 10th came and went, and Sierra still hadn't opened. I decided to disenroll from Sierra and begin training at a new flight school in Long Beach, California.

On January 12, 2004, I went to Sierra and advised the chief flight instructor that I was disenrolling and requested that all the unused loan money be returned to Key Bank. Both he and a financial aid adviser told me that I had $34,000 remaining in my account, and that it would be returned to Key within 30 days. Assuming that all was settled, I packed my belongings and moved back to Southern California.

About a week later, I received a phone call from a former fellow student of Sierra who advised me that Sierra had been bought out by KS Aviation. The new company was claiming that the money from student loans had gone missing and that under no circumstances would any student receive a refund from KS. Also, KS was assuming no liability from the former business and stated that any disputes would have to be brought up with the previous owners. As the days went by, I did not receive one words notice from either KS or the former Sierra that this was to take place. My $34,000 of unused loan money had now vanished and I was to be held accountable for it.

After many unsuccessful attempts to settle the situation with Sierra, I was brushed aside and transfered from one department to another. I was also refused any information on who the new owners were and told that there was absolutely no way for me to get the money back. At this point I have contacted two attorneys and wish to pursue this matter further. I understand that many other students at Sierra Academy have become victims and have had their money vanish into thin air. If you are one of these students, or know of a student in this situation, do not hesitate to contact me at dougscarborough@yahoo.com.

I will also post more stories of victims should they choose to have them told.
Thank you,
Douglas Scarborough

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