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Montgomery County Nursing School Operator Charged With Defrauding Students

KING OF PRUSSIA, Pa. (CBS) - The owner of a nursing preparatory school based in New Castle, Del. was under arrest today in New Jersey and awaiting extradition to Pennsylvania, accused of stealing tuition money from four students who enrolled at a satellite campus in King of Prussia.

Upper Merion police say Dana Kearney was taken into custody in Willingboro, NJ, on charges that include operating a corrupt organization and deceptive and fraudulent business practices.

Detective Andrew Rathfon says Kearney, 41, of Mullica Hill, NJ, took a total of $37,000 from the four students at Westbrook Prep, then abruptly cancelled the classes, "sending all of the students letters stating they were terminated from the program due to poor attendance and test grades -- which we found out later wasn't the case. She in fact was not even paying the rent on the facility."

He says the Delaware attorney general's office is also investigating whether she stole money from two dozen students at the campus in that state.

Det. Rathfon says Kearney also ran a beauty school in New Jersey. Police say it appears there's a pattern of her starting schools and then walking away with the tuition money.

Reported by Brad Segall, KYW Newsradio 1060

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