Olivet University, under federal investigation for money laundering and labor trafficking, won a reprieve from its sole accreditor, which said it would remove the university's "warning status" and delay any decision on the college's future for one year.
Olivet University, founded in 2000 by Korean-American cleric David Jang, was placed on a warning by the Association of Biblical Higher Education (ABHE) last year after the college was rocked by a series of legal scandals, including criminal convictions, lawsuits and administrative penalties.
Olivet also has legal disputes with Newsweek, whose owners are former members of David Jang's sect.
Olivet's accreditation with ABHE expired at the end of February. In November, the Association gave Olivet until February to provide evidence that it "demonstrates integrity in all of its practices and relationships with strict adherence to ethical standards."
The college had met those standards, according to ABHE's Commission on Accreditation, which removed the warning status, allowing Olivet's accreditation to continue.
The Commission on Accreditation decided that Olivet "substantially complies with ABHE's Institutional Accreditation Standards, including documentation of the appropriateness, rigor, and achievement of its stated student learning outcomes and all other Title IV eligibility requirements at this time," ABHE said on its website.
Olivet University said in a statement to Newsweek: "We are delighted to share the amazing news that ABHE has conferred good standing, removing the warning status, and has affirmed the continued accreditation of Olivet University.... The recent announcement by ABHE clearly indicates 1) Olivet University has been removed from warning status and is in good standing, and 2) Olivet continues to be accredited, regardless of the specified timeframe."
The accreditor declined to affirm Olivet's status beyond the next year until a legal dispute with California's education regulator is resolved. "Action on reaffirmation is deferred for one year in light of a pending action by the State of California," ABHE said. ABHE did not respond to Newsweek's email requesting comment.
California's education regulator has filed an administrative suit that would shut down Olivet after education inspectors searched its campuses in the state and found 14 alleged violations. Olivet has rejected the accusations. Monica Vargas, a spokesperson for California's regulator, said ABHE's decision would have no bearing on the state's case.
The California case is the latest in a series of controversies surrounding David Jang's followers. Some members of Jang's sect, the World Olivet Assembly, have been in legal trouble for much of the past decade, including a money laundering probe in Manhattan which ended in several guilty pleas; a counterfeit goods case in North Carolina; a racketeering suit in Texas and numerous tax and business disputes around the country.
In a recent lawsuit, a group of former Olivet University students accuses Jang and the university of running an international labor trafficking scheme.
The students say they were offered scholarships to study at Olivet University. When they arrived in the United States from Venezuela, India and Spain on student visas obtained through the college, they were required to do manual labor for which they were never paid, according to the lawsuit filed in Riverside County, California. Olivet denied the students' accusations.
This lawsuit covers some of the same ground as a federal investigation into Olivet University. The investigations arm of the Department of Homeland Security is looking into whether Olivet University and Jang's disciples committed labor trafficking, visa fraud and money laundering, Newsweek has reported.
Newsweek has confirmed in recent weeks that the federal investigation is still underway.
The ABHE decision comes at a critical time for Olivet University, which was expanding rapidly across North America before its legal troubles began. The college has now been shut down or placed under review in at least 10 states and territories.
The California complaint against Olivet was filed to the state's Department of Consumer Affairs by state Attorney General Rob Bonta after representatives of the Bureau of Private Postsecondary Education for the State of California inspected Olivet campuses in late 2022. A hearing is scheduled for April.
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