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that a failing student had not made an effort to pass the bar
examination during the previous review course, he would not
permit that student to reenroll. Additionally, LECC’s brochure
stated that a failing student had to have received a score of at
least 1,400 on the prior bar examination to reenroll in the
guaranteed course. According to the brochure, students who had
less than a 1,400 score on the previous bar examination could
reenroll in the nonguaranteed course. When a failing student
(who had not obtained a tuition refund) reenrolled in an LECC
course, petitioner provided additional materials and services to
the student without additional compensation from the student.
Also, because the LECC class sizes were limited, a repeating
student reduced petitioner’s ability to generate revenue from the
LECC courses.
LECC had a checking account at Sanwa Bank (Sanwa account).
During 1991, petitioner deposited the registration fees and the
tuition from both the guaranteed and nonguaranteed bar review
courses and the supplemental workshops into the Sanwa account.
During 1991, petitioner deposited $265,273 into the Sanwa
account. Petitioner’s deposits into the Sanwa account included
the $30,000 tuition from the winter 1992 guaranteed review
course.2 During 1991, petitioner also paid refunds from the
Sanwa account to guaranteed students who failed the bar
2 Amounts are rounded to the nearest dollar.
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Last modified: May 25, 2011