Dan Rather Reports

Episode Number: 439

Episode Title: Mind Your Loan Business

Description: Dan Rather continues his investigation into truck driver training schools, this time in Michigan, where former trucking students claim they were defrauded out of thousands of dollars for a new start that ended up to be a dead end. Also, small investors who lost big to Wall Street giants try to get their money back.

Transcript:

TONIGHT, A TOWN THAT WAS ONCE A THRIVING SLICE OF AMERICANA IS NOW DOWN ON ITS LUCK. THEY'VE NEVER APPLIED FOR A JOB. THEY'VE NEVER FILLED OUT A RESUME BEFORE. THEY NEVER THOUGHT ABOUT NOT HAVING A JOB FOR THE REST OF THEIR LIFE.

MANY, DESPERATE FOR A JOB, HAVE TURNED TO TRUCK DRIVING SCHOOLS ONLY TO FIND IT WAS THE ROAD TO NOWHERE. THIS COST ME EVERYTHING. I HAD NOTHING. I MEAN, THEY SHOWED ME THAT THERE WAS LIGHT AT THE END OF THE TUNNEL. THERE'S NOT.

THIS IS SOMETHING THAT ENDS PEOPLE'S CAREERS. AND IT'S LAW STUDENTS VS. WALL STREET IN THE WAKE OF THE FINANCIAL STORM. THEY TRY CASES AGAINST SOME OF THE LEADING ATTORNEYS IN THE COUNTRY. AND THIS IS EXPERIENCE THAT YOU JUST COULD NOT DUPLICATE. AND THEY HOLD THEIR OWN. WE'LL BRING YOU THE NEWS. TONIGHT. ON DAN RATHER REPORTS.

GOOD EVENING. WE BEGIN TONIGHT'S PROGRAM WITH ANOTHER IN OUR SERIES OF INVESTIGATIONS ABOUT THE TRUCKING INDUSTRY... AND TRUCK DRIVER TRAINING SCHOOLS. BUT THIS IS ALSO A STORY ABOUT DESPERATE PEOPLE AND DESPERATE TIMES. FOR A LOT OF AMERICANS, BRINGING HOME A PAYCHECK IS HARD THESE DAYS. JOBS THAT WERE A GIVEN FOR GENERATIONS OF WORKERS -- BOTH BLUE COLLAR AND WHITE -- ARE VANISHING OVERNIGHT. AND IN NO PLACE IS THAT MORE EVIDENT THAN MICHIGAN, ESPECIALLY AROUND DETROIT, WHERE THE OFFICIAL UNEMPLOYMENT RATE IS NEARLY 17 PERCENT. THAT'S THE HIGHEST IN THE COUNTRY, AND IT'S GETTING WORSE. DETROIT ALSO HAS THE FASTEST GROWING UNEMPLOYMENT RATE IN THE UNITED STATES.

THE PROBLEMS OF INNER-CITY DETROIT ARE WELL KNOWN, BUT A SUBURB LIKE LIVONIA WAS THRIVING UNTIL RECENTLY. SHIFTS HAVE BEEN CUT AT THE LOCAL AUTO PLANTS, PARKING LOTS BUILT FOR HUNDREDS OF EMPLOYEES ARE EMPTY, AS WORK HAS DRIED UP.

IT'S A UNION TOWN, WHERE ICE HOCKEY IS KING. BUT THE HARD HITS TO THE ECONOMY HAVE BROKEN THE DREAMS OF MANY WHO LIVE HERE. FOLKS AREN'T LOOKING TO FIND A CAREER ANYMORE, THEY JUST WANT TO FIND A JOB -- ANY JOB THAT COMES WITH A PAYCHECK. YOU CAN SEE IT ON THE FACES OF THE NEWLY UNEMPLOYED. ON ANY GIVEN DAY WE COULD HAVE ANYWHERE FROM 200 TO 500 NEW CUSTOMERS COME IN AND FILE FOR UNEMPLOYMENT. BRAD SPECK, A NATIVE OF LIVONIA, IS THE ASSISTANT DIRECTOR OF THE TOWN'S MICHIGAN WORKS OFFICE. MICHIGAN WORKS IS A STATE FUNDED AGENCY THAT'S NOT ONLY FINDING JOBS BUT HELPING RE-TRAIN WORKERS WHO NOW REALIZE THE DAYS OF EARNING A SOLID LIVING AT FACTORIES AND AUTO PLANTS ARE DISAPPEARING. COME BACK FOR THE ORIENTATION AND LET'S SEE IF WE CAN HELP YOU FIND THE NEXT JOB. SURE, OK. ONE OF THINGS WE DO, WE HELP PEOPLE RE-TRAIN FOR A NEW JOB. A COUPLE OF YEARS AGO, THE STATE STARTED A PROGRAM CALLED NO WORKER LEFT BEHIND TO RE-TRAIN PEOPLE FOR A CHANGING ECONOMY. PEOPLE ARE HERE IN FOR THE FIRST TIME IN 20, 30 YEARS AND THEY'VE BEEN WITH THE AUTOMOTIVE INDUSTRY. OH, YEAH. IT'S A STARK NEW REALITY FOR ME. OK. WE'VE HAD 6,000 ORIENTATIONS THIS YEAR IN THE LAST 11 AND A HALF MONTHS. OUR CUSTOMERS ARE GENERALLY PEOPLE WHO HAD NO IDEA THEY WOULD EVER BE UNEMPLOYED. YOU KNOW, WHEN THE PROGRAM STARTED TWO AND A HALF YEARS AGO, WE WERE SEEING PEOPLE RECENTLY UNEMPLOYED AND THEY MAY HAVE BEEN AT THE JOB, YOU KNOW, TWO TO FIVE, TEN YEARS. A LOT OF OUR CUSTOMERS NOW HAVE BEEN AT A JOB FOR 30, 40 YEARS. THEY'VE NEVER APPLIED FOR A JOB. THEY'VE NEVER FILLED OUT A RESUME BEFORE. THEY NEVER THOUGHT ABOUT NOT HAVING A JOB FOR THE REST OF THEIR LIFE. YOUR NAME, SOC', THAT BOX, AND THEN GET ON A COMPUTER AND FOLLOW ALL THESE STEPS RIGHT HERE. A LOT OF PEOPLE I KNOW WENT RIGHT INTO THE FACTORIES RIGHT OUT OF HIGH SCHOOL. THAT'S WHAT YOU DID. AND THAT'S NOT REALLY THE REALITY HERE I MICHIGAN ANYMORE.

TEN YEARS AGO, YOU DIDN'T SEE TOO MANY BUSINESSES THAT WERE CLOSED. AND NOW YOU'LL GO BY AND YOU'LL SEE SMALL MOM & POP PLACES CLOSED, YOU'LL SEE LARGE FACTORIES THAT ARE CLOSED AND JUST AN EMPTY PARKING LOT WITH, YOU KNOW, GRASS GROWIN' UP THROUGH THE ASPHALT OF THE PARKING LOT NOW. ACROSS THE COUNTRY... MILLIONS OF JOBLESS AMERICANS ARE RETRAINING, ESPECIALLY AT VOCATIONAL SCHOOLS AND TRADE SCHOOLS. THE FASTEST GROWING SEGMENT OF THE ECONOMY IS IN CAREERS THAT REQUIRE TWO YEARS OR LESS OF ADVANCED EDUCATION. DEMAND FOR RETRAINING IN THE STATE OF MICHIGAN IS HIGH BECAUSE THE INDUSTRY THAT REALLY DROVE EVERYTHING IN THE STATE IS JUST IN SUCH A DECLINE. YOU KNOW, AUTOMOTIVES, MANUFACTURING-- TO PEOPLE MAYBE OUTSIDE THE AREA IS THE PEOPLE THAT WORK AT THE PLANT AND PUT THE CAR TOGETHER. BUT, THERE ARE SO MANY TIER TWO, TIER THREE OPERATIONS HERE THAT MAKE THE PARTS OR PAINT THE PARTS, YOU KNOW? THE RESTAURANT IN FRONT OF THE PLANT, YOU KNOW, THE BUSINESSES THAT THE EMPLOYEES AT THE PLANT USE EVERY DAY ON THE WAY TO AND FROM. THE AUTOMOTIVE INDUSTRY IS JUST SO WIDE RANGING IN THE STATE OF MICHIGAN THAT PEOPLE ARE AFFECTED SO SEVERELY. THE BIG JOB PRODUCERS IN MICHIGAN, ACCORDING TO LABOR EXPERTS, WILL BE IN HEALTHCARE, INFORMATION TECHNOLOGY, ACCOUNTING, AND TRANSPORTATION. THE STATE HOPES IT CAN MOVE PEOPLE INTO THESE JOBS FAST.

ONE POPULAR TRACK FOR THOSE ANXIOUSLY LOOKING FOR A NEW LINE OF WORK IMMEDIATELY IS TRUCKING SCHOOLS. MANY OF THE SCHOOLS ADVERTISE THAT THEIR GRADUATES CAN HIT THE ROAD TOWARDS A NEW LIFE IN AS LITTLE AS THREE WEEKS. IT'S A VERY ATTRACTIVE OPTION FOR ANYONE DESPERATE TO PUT FOOD ON THE TABLE. I HAD 25 YEARS OF EXPERIENCE IN THE CONSTRUCTION FIELD, AND I COULDN'T GET A JOB NOWHERE. KEITH COOPER DOESN'T HAVE A COLLEGE DEGREE AND HE HASN'T SPENT MUCH TIME AROUND COMPUTERS BUT HE'S WORKED HIS WHOLE LIFE IN CONSTRUCTION AND MADE A GOOD LIVING FOR HIS FAMILY. NICE CARS, A FOUR-BEDROOM HOUSE IN A TOP SCHOOL DISTRICT, THEY EVEN HAD A SUMMER HOME ON THE LAKE. EVERYTHING BEGAN TO CHANGE, COOPER SAYS, ABOUT THREE YEARS AGO WHEN HIS BUSINESS -- LIKE HUNDREDS OF OTHERS IN LIVONIA -- SUDDENLY SCREECHED TO A DEAD HALT. I MEAN HERE WAS THE PET STORE - THEY'RE OUT OF BUSINESS, THE CATERING PLACE HAS GONE OUT OF BUSINESS, THE DUNKIN' DONUTS -- THEY ACTUALLY JUST REDID THAT PLACE, SO. I HAD NOTHING COMIN' IN. I MEAN, IT WAS A STRAIN ON OUR MARRIAGE. I MEAN, IT WAS A STRAIN ON MY FAMILY. I MEAN, HERE THEY'RE USED TO THEIR DAD BEIN' A PROVIDER FOR 'EM ALL THE TIME, AND I COULDN'T GET A JOB, YOU KNOW, WORKIN' AT MCDONALDS OR BURGER KING. WITH FOUR KIDS, BILLS PILING UP AND THEIR HOME VERGING ON FORECLOSURE, COOPER SAYS HE DECIDED HIS LAST BEST HOPE WAS DRIVING A SEMI TRUCK. I WANTED TO TRY TO FIND SOMETHIN' THAT I COULD GET INTO THAT WOULD, YOU KNOW, MAKE ME MONEY AGAIN AND PEOPLE I TALKED TO, THEY SAID THE TRUCKING INDUSTRY WAS UNLIMITED RESOURCES. THERE'S MONEY TO BE MADE THERE. YOU'LL NEVER BE LAID OFF. YOU'RE GUARANTEED JOBS. IT SOUNDED PRETTY GOOD. WELL, WHEN YOU GOT PEOPLE THAT ARE, YOU KNOW, GRASPIN' FOR STRAWS, AND THEN HERE'S SOMEBODY STANDIN' WITH A GREAT, BIG, BRIGHT LIGHT AT THE END OF THE TUNNEL SAYIN', "HEY, YOU COME HERE," YOU KNOW, YOU KINDA WANT TO START BELIEVING IN THAT STUFF.

SOME PEOPLE LEARN TO DRIVE A BIG RIG AT LOCAL COMMUNITY COLLEGES OR NON-PROFIT VO-TECH SCHOOLS. OTHERS GO TO PRIVATE, FOR-PROFIT TRUCKING SCHOOLS. THERE ARE AT LEAST TEN IN THE LIVONIA AREA ALONE. COOPER WENT TO THE ONE CLOSEST TO HIS HOUSE: NU-WAY TRUCK DRIVER TRAINING CENTER. WE CHANGE LIVES. FROM EVERY WALK OF LIFE -- MALE, FEMALE, BIG, SMALL. IT'S PERSONALLY REWARDING TO ME, TO ME AND MY STAFF. CLINT YERKES OWNS NU-WAY. HE GOT INTO THE INDUSTRY, HE SAYS, NEARLY 10 YEARS AGO WHEN A FRIEND CONVINCED HIM THAT SCHOOLING ROOKIE TRUCKERS WAS A BOOMING BUSINESS. NOW THERE ARE THREE NU-WAY DRIVER TRAINING CENTERS -- TWO IN MICHIGAN AND ONE IN MISSOURI. ANYWHERE IN YOUR LIFE, DID YOU DRIVE A TRUCK? I'VE DRIVEN A TRUCK IN THE YARD ONCE OR TWICE, BUT NEVER OUT ON THE ROAD. YERKES ALSO SITS ON THE BOARD OF THE COMMERCIAL VEHICLE TRAINING ASSOCIATION, A WASHINGTON BELTWAY INDUSTRY GROUP MADE UP OF PROPRIETARY SCHOOLS ACROSS THE COUNTRY THAT TRAIN 40,000 TO 50,000 NEW TRUCK DRIVERS EACH YEAR. WE'VE HAD PEOPLE WITH DOCTORATES COME THROUGH WHO HAVE BEEN TRUCK DRIVERS. SOMEBODY WHO DOESN'T HAVE A HIGH SCHOOL EDUCATION. SOMEBODY THAT'S LOOKING FOR A SECOND CAREER. SOMEBODY WHO HAS ALREADY RETIRED FROM A PREVIOUS CAREER. THERE ARE ALL TYPES FROM ALL WALKS OF LIFE, LOOKING TO MAKE A LIVING AND TRUCK DRIVING AFFORDS THEM THAT OPPORTUNITY. YERKES SAYS OVER THE PAST NINE YEARS, THAT NU-WAY'S THREE-WEEK TRAINING COURSE HAS HELPED CHANGE THE LIVES OF NEARLY 7000 STUDENT TRUCKERS. HE URGED US TO TALK TO ONE RECENT GRADUATE WHO'D FOUND SALVATION ON THE OPEN ROAD, A FORMER AUTO MECHANIC NAMED MARK ERWIN WHO SAYS HE MADE $48,000 HIS FIRST YEAR OUT. I WAS NERVOUS AT FIRST. I MEAN, I WAS 49 YEARS OLD AND YOU KNOW, LOOKING TO START A NEW CAREER. STILL HAVE A COUPLE OF TEENAGERS LEFT AT HOME. AND WASN'T SURE WHETHER I WAS DOING THE RIGHT THING OR NOT. WELL ARE YOU HAPPY WITH THE SCHOOL? VERY MUCH. I'VE KEPT IN TOUCH WITH EVERYBODY HERE SINCE I'VE BEEN OUT ON THE ROAD, CALLIN' 'EM UP JUST TO SAY, "HI," OR STOPPIN' IN. I TALK TO DRIVERS. THEY CALL ME ON MY CELL PHONE. AND THEY'LL TELL ME THEY'RE GOING THROUGH A BEAUTIFUL MOUNTAIN RANGE, OR DRIVING ALONG THE PACIFIC. I MEAN, THEY LOVE IT. IT'S VERY REWARDING FOR THEM. YERKES SAYS HIS TRACK RECORD OF QUICKLY GETTING STUDENTS INTO GOOD-PAYING JOBS IS WHAT ATTRACTS NEW RECRUITS. OUT ON THE DRIVING COURSE, HE SUGGESTED WE TALK WITH CHARLIE YONISH AND MARIANNE MALLOY -- TWO STUDENTS WHO WERE FINE-TUNING THEIR BIG-RIG SKILLS. THIS IS ONE FIELD THAT THEY ARE HIRING. I WON'T BE MAKING THE MONEY THAT I USED TO AT FORD MOTOR COMPANY. BUT AT LEAST IT'LL BE SOME INCOME AND I CAN PAY MY BILLS. TO ME AN 18 WHEELER IS QUITE AN INCREDIBLE PIECE OF MACHINERY. SO FOR SOMEBODY BE ABLE TO TELL YOU HOW TO, YOU KNOW, CONTROL THAT SAFELY IS -- I THINK PRETTY REMARKABLE. FORMER NU-WAY STUDENT KEITH COOPER SAYS HE HAD THE SAME OPTIMISM WHEN HE WENT TO THE SCHOOL LAST FALL. THEY WERE TELLIN' ME, YOU KNOW, "YOU'RE GONNA MAKE, YOU KNOW, 60, 70, 80, $90,000 A YEAR. WE CAN GET YOU A JOB RIGHT AWAY." I EXPLAINED TO 'EM, I SAYS, "LISTEN," I SAYS -- "I'M IN FORECLOSURE ON MY HOUSE. I HAD NO MONEY." AND THEY BASICALLY SAID, "THAT DON'T MATTER. THE TRUCKING COMPANIES WILL PAY FOR EVERYTHING FOR YOU." BUT COOPER SAYS IT DIDN'T WORK OUT LIKE THAT. HIS ODYSSEY IN TRUCKING BEGAN WELL ENOUGH. BEFORE GRADUATING FROM NU-WAY, HE'D ALREADY GOTTEN MULTIPLE "PRE-HIRE" OFFERS AND SIGNED A CONTRACT WITH ONE OF THE COUNTRY'S LARGEST FLEETS. BUT EVEN AFTER LANDING THE BEST JOB HE COULD HOPE FOR, HE FOUND OUT HE'D BE EARNING A TRAINEE RATE OF $350 A WEEK. IT WAS LESS THAN HALF THE AVERAGE WAGE NU-WAY TALKED ABOUT AND BARELY ENOUGH TO COVER HIS EXPENSES ON THE ROAD. COOPER SAYS AFTER THREE MONTHS OF TRAINING, THE COMPANY SAID THEY HAD NO WORK FOR HIM. BY THEN, HE SAYS, MONEY WAS SO TIGHT THAT HIS DAUGHTER HAD TO BUY HIS PLANE TICKET HOME. STILL, HE WAS DETERMINED TO MAKE IT WORK. OVER THE NEXT 10 MONTHS, COOPER WORKED FOR THREE MORE MAJOR CARRIERS. LOOKING OUT ON THE ROAD, THERE ARE TRUCKERS OUT THERE WHO ARE MAKING IT, OR AT LEAST APPEAR TO BE MAKING IT. AND I TALKED TO ONE TRUCKER DRIVER TODAY. HE SAID HE'S MAKING $45,000, $50,000 A YEAR AND SEEMS PRETTY HAPPY ABOUT IT. AND WITH ALL RESPECT TO SOMEONE WHO SAID, "LISTEN, I'VE HEARD YOUR STORY. I EMPATHIZE WITH IT, SYMPATHIZE WITH IT. BUT MAYBE IT WAS YOU JUST DIDN'T HAVE WHAT IT TOOK TO BE A TRUCKER." THEN THIS WOULD BE THE FIRST TIME I'VE NOT SUCCEEDED AT SOMETHING. I MEAN, EVERYTHING I'VE EVER DONE, I DID 110 PERCENT. I MEAN, I GAVE THIS TRUCKING INDUSTRY -- THEY TOLD ME ONCE YOU GET ONE YEAR IN, YOU CAN WRITE YOUR OWN TICKET. I GOT A YEAR IN, THEN THEY TOLD ME, "NO, YOU NEED AT LEAST TWO." COOPER SAYS HE COULDN'T AFFORD TO STAY IN TRUCKING ONE MORE WEEK, LET ALONE ANOTHER YEAR. I HAD BILLS. I WAS LOSIN' MY HOUSE, I HAD TO SEND MONEY HOME FOR MY FAMILY TO TRY TO FEED MY FAMILY, TO TAKE CARE OF THEM. WELL, WHAT HAPPENED TO THE IDEA THAT YOU'D BE MAKING 40 TO MAYBE $70,000 A YEAR ONCE YOU FINISHED SCHOOL AND GOT THROUGH YOUR TRAINING? WELL, THAT'S WHAT THEY SAID. ONCE YOU GET INTO A TRUCK. YOU SURE OF THAT? I'M 100 PERCENT SURE OF THAT. I MEAN, LISTEN, I WAS A BUSINESSMAN BEFORE I WENT THERE, SO I KNOW NUMBERS. NOW, IF THEY CAME OUT AND TOLD YOU, "HEY, I'M GONNA PAY YOU A WHOPPIN' $4.41 AN HOUR. I WANT YOU TO LEAVE YOUR FAMILY FOR AT LEAST SIX WEEKS, FOUR WEEKS," HOW MANY PEOPLE YOU THINK WOULD BE LININ' UP TO GET IN THAT JOB? COOPER SAYS NU-WAY TURNED OUT TO BE THE WRONG WAY TO GET OUT OF THE HOLE. BUT IF YOU'RE IN A DESPERATE SITUATION WHERE YOU NEED TO HAVE MONEY AND MONEY NOW, THIS IS NOT THE WAY TO GO. THIS IS ABSOLUTELY NOT THE WAY TO GO. COOPER IS NOT THE ONLY NU-WAY GRADUATE WHO SAYS THE SCHOOL DIDN'T DELIVER. HE IS ONE OF SEVEN FORMER STUDENTS WHO HAVE FILED A LAWSUIT IN MICHIGAN STATE COURT THAT ALLEGES NU-WAY ENTICED THEM WITH "MISLEADING ADVERTISEMENTS" AND "FRAUDULENT MISREPRESENTATIONS." WELL FIRST OF ALL, TELL ME YOUR STORY. I WAS JUST IN NEED OF A NEW CAREER, SO I DECIDED TO GO TO NU-WAY AND FIND OUT, YOU KNOW, WHAT THE TRUCKIN' INDUSTRY WAS ALL ABOUT. TRACY HITCHCOCK SAYS SHE GAVE UP TWO LOW-PAYING JOBS TO GO TO NU-WAY. WELL DID YOU MAKE ANY MONEY AS A TRUCK DRIVER? I MADE $250 AS A TRUCK DRIVER. TOTAL? TOTAL. TELL ME YOUR STORY. I HEARD THE COMMERCIAL ON THE RADIO, AND I THOUGHT, "I'M NOT MOVIN' UP IN THE INDUSTRY I WAS IN. BRYAN CLARK SAYS NU-WAY PROMISED HIM THAT HIS SPOTTY DRIVING RECORD WOULD NOT BE A PROBLEM AND PRESENTED HIM WITH PRE-HIRE OFFERS TO REASSURE HIM. THEY TOLD ME THAT IN ORDER FOR YOU TO GET ACCEPTED, YOU AT LEAST HAVE TO HAVE TWO OR THREE PRE-HIRES FROM COMPANIES TO GET ACCEPT YOU. WELL, I FOUND OUT LATER ON THAT A PRE-HIRE IS SOMEONE THAT MIGHT HIRE YOU. IT'S NOT A GUARANTEED HIRE. YOU HAD A DRIVING RECORD BEFORE YOU WENT TO SCHOOL. UH- HUH. THIS SCHOOL KNEW ABOUT MY PROBLEM. IT WAS STUFF IN THE PAST. AND THEN, THEY AND SAID, "OH, YOU'LL BE FINE. NOT A PROBLEM. COME ON AND JOIN US." TELL ME WHAT HAPPENED TO YOU. MY NAME IS STEVE GOOSEN. I WAS IN THE MORTGAGE INDUSTRY, WORKING WHEN THE SUBPRIME MARKET WENT DOWN. AND I CHOSE NU-WAY BECAUSE THEY HAD A JOB PLACEMENT CENTER, I WAS TOLD THAT I COULD GET A LOCAL JOB OR, YOU KNOW, I'VE GOT THREE SMALL ONES AND NEEDED TO BE HOME EVERY NIGHT. SO THEY TOLD YOU THEY'D GET YOU A JOB DRIVING TRUCKS LOCALLY. CORRECT. AND YOU KNOW, HE PROMISED ME THAT THEY WOULD BE ABLE TO DO THAT. DID THEY DO THAT? NO. LIKE SO MANY OTHER PEOPLE AROUND METRO DETROIT HERE, I WAS SIMPLY LOOKING FOR A JOB. GREG ADKINS, AN UNEMPLOYED C ONSTRUCTION WORKER, SAYS THAT NU-WAY BROUGHT IN COMPANY RECRUITERS WHO MADE ALL SORTS OF BIG PROMISES. AND THEY WOULD PAINT THE BIG ROSY PICTURE OF WHAT IT WOULD BE LIKE TO GO TO THEIR COMPANY. WE SHOULD APPLY WITH THEM, AND WE'RE GONNA MAKE FORTY, FIFTY GRAND THE FIRST YEAR, AND EVEN MORE AFTER THAT, ON AND ON. AND THEY PAINTED THE SAME WONDERFUL SCENARIO THAT THE RECRUITERS AT NU-WAY DID. AND NOBODY TALKS ANY NEGATIVES. THE NU-WAY SCHOOL WAS SELLING THE DREAM EVERY WHICH WAY THEY COULD -- ACCORDING TO THESE GRADUATES -- AND PEOPLE WITH NOWHERE ELSE TO GO WERE BUYING. I KNEW PEOPLE THAT WERE WALKING THERE 'CAUSE THEY DIDN'T HAVE GAS MONEY, SHOWIN' UP AT 7:00 IN THE MORNING IN THE DEAD OF WINTER, DECEMBER MORNINGS WALKIN' FOR A FEW MILES TO BE THERE AT 7:00 AM, GUYS THAT DIDN'T HAVE MONEY TO BUY A LUNCH, OR BUY A CAN OF POP OUT OF THE MACHINE. DO YOU THINK HE'S OVERSTATING THAT. A LOT OF PEOPLE WERE CATCHING BUSSES FROM DETROIT TO PONTIAC, AND WERE GETTIN' MONEY FROM OTHER STUDENTS JUST TO GET BACK AND FORTH TO THE SCHOOL. POOR PEOPLE. A LOT OF US, MOST OF US. A LOT OF US DIDN'T HAVE NOTHIN', IT'S SAD. IT WAS ACTUALLY A SAD THING TO SEE. WELL, YOU KNOW THAT I TALKED TO THE PEOPLE WHO RUN THE TRUCKING SCHOOLS. YOU KNOW WHAT THEY SAY? THEY SAY, "DAN RATHER -- DON'T BELIEVE ALL THIS. WE LEVEL WITH PEOPLE. WE TELL 'EM GOING IN EXACTLY WHAT THE SITUATION IS." BUT YOU'RE TELLING ME THAT WASN'T YOUR EXPERIENCE. OH, NO. IT WASN'T. THEY SAID IT WAS A RECESSION-PROOF INDUSTRY. YES. YOU HAVE YOUR NEW CAREER. YOU CAN RETIRE DOING THIS. AND ALL YOU'RE GONNA DO IS MAKE MORE AND MORE MONEY-- MORE AND MORE MONEY-- THE MORE YEARS YOU STAY IN IT, YOU'RE JUST GONNA MAKE MORE AND MORE YEAR AFTER YEAR. IT'S GIVIN' THE UNEMPLOYED AND THE PEOPLE OUT HERE THAT DOESN'T HAVE A LOT OF HOPE, IT GIVES 'EM SOMETHIN' TO GO FOR, YOU KNOW. AND THEY GO FOR IT. AND THEN, YOU GET SOCKED IN THE GUT. THAT'S EXACTLY WHAT I WAS GONNA SAY. THEY'RE SELLIN' HOPE. NU-WAY OWNER CLINT YERKES SAID HIS ATTORNEY ADVISED HIM NOT TO DISCUSS THE LAWSUIT, BUT HE TOLD US THAT WITH THE THOUSANDS OF DRIVERS HE'S TRAINED OVER THE YEARS, THERE ARE BOUND TO BE A HANDFUL WHO ARE DISSATISFIED. I'M NOT SAYING EVERY SINGLE ONE OF THEM IS HAPPY. BUT THERE ARE A LOT OF THEM OUT THERE, AND I WOULD SAY IT WAS THE MAJORITY, THAT ARE STILL DRIVING, HAPPY WHAT THEY'RE DOING, AND ENJOY A BETTER LIFE FOR WHAT IT IS THEY ARE DOING. YOU SAY AFFORD OPPORTUNITY. IS IT REAL OR AN ILLUSION. IT IS DEFINITELY REAL. AND YOUR RECORD SHOWS THAT? YES, SIR. IF YOU TALK TO ENOUGH PEOPLE OUT THERE, THEY ENJOY IT. THEY LOVE IT. IT'S NOT FOR EVERYBODY. AND THERE WILL BE PEOPLE OUT THERE WHO CAN'T MAKE IT OUT THERE IN THE TRUCKING INDUSTRY. AND THEY PROBABLY COULDN'T MAKE IT IN THE OFFICE DOWN THE STREET EITHER, BY THE WAY. BUT ONE TRUCKING INSIDER SAYS THAT INDUSTRY-WIDE, MOST NEW GRADUATES DON'T MAKE IT FOR THE LONG HAUL. SEVENTY-EIGHT PERCENT WON'T MAKE IT MORE THAN FOUR MONTHS, UNFORTUNATELY. VERN FULLER HAS WORKED IN THE DRIVER TRAINING BUSINESS FOR 14 YEARS, NEARLY HALF OF THEM AT NU-WAY, WHERE HE WAS VICE PRESIDENT UNTIL 2006. HE SAYS TRUCKING IS A GOOD CAREER FOR CERTAIN PEOPLE, BUT THAT SOME DRIVER TRAINING SCHOOLS ARE PEDDLING PIPE DREAMS TO ENROLL STUDENTS WHO ARE ILL-SUITED FOR THE LONG HAUL LIFE. THE TRUCKING INDUSTRY IS A HUGE LIFESTYLE CHANGE. IT'S A CULTURAL SHOCK WHEN YOU'RE NOT ABLE TO PULL OVER AND USE, YOU KNOW, RESTROOM FACILITIES EVERY TEN MILES OR SO. IF YOU'RE TRAINER IS SAYING, "HEY, LOOK. YOU NEED TO USE THIS-- THIS BOTTLE OR THIS BUCKET BECAUSE WE HAVE A DEADLINE TO MEET." TRUCK DRIVING SCHOOLS ARE NOT ALWAYS PROVIDING THAT NOW, SO THERE ARE LESSER-THAN PROGRAMS OUT THERE THAT ARE NOT-- DOING THEIR STUDENTS THE GREATEST OF SERVICE. THEY'RE JUST LOOKING FOR ENROLLMENTS. FULLER SAYS HE'D BEEN A SOCIAL WORKER AND TELEVISION HOST UNTIL HE DISCOVERED HIS GOD-GIVEN TALENT FOR RECRUITING HOPEFUL TRUCKERS. I PROBABLY COULD NOT SELL TRUCK DRIVING. I'VE NEVER DONE IT. WHAT I COULD SELL IS PROBLEM RESOLUTION. BUT WHAT WORKED OUT WAS THAT MOST PEOPLE WEREN'T ENROLLING BECAUSE THEY WANTED TO DRIVE A TRUCK ANYWAY. THEY WANTED TO MAKE A GOOD LIVING. THEY WANTED SOLUTIONS TO THEIR FINANCIAL PROBLEMS. I CAN GIVE YOU THAT. I CAN SELL YOU THAT. AND SELL IT, HE DID. WE BECAME EXTREMELY SUCCESSFUL -- ONE OF THE MOST SUCCESSFUL SCHOOLS THROUGHOUT THE COUNTRY. WE WERE GRADUATING SOMEWHERE AROUND 150 STUDENTS PER MONTH, AND THAT IS PRETTY MUCH UNHEARD OF TODAY. EARLIER THIS YEAR, FULLER PUBLISHED "THE TRUTH ABOUT TRUCK DRIVING SCHOOLS," A WEB BOOK THAT HE SAYS WAS INTENDED TO WARN PEOPLE ABOUT COMMON TACTICS USED TO DRUM UP ENROLLMENTS. BUT INSTEAD, HE SAYS THE BOOK GOT HIM FIRED AND SUED BY THE TRUCKING SCHOOL WHERE HE'D BEEN THE ADMISSIONS DIRECTOR. I DIDN'T REALIZE THAT I WOULD BE SUBJECTED TO AN ATTACK BECAUSE I WROTE A BOOK THAT WAS GOING TO INFORM THE CONSUMER. I'M GONNA ASK YOU TO REMEMBER WHEN YOU TALKED TO THE SCHOOL ABOUT GOING TO THE SCHOOL, WHAT DID THEY TELL YOU THE PROSPECTS FOR YOUR MAKING. THEY TOLD ME ROUGHLY ABOUT $50,000 TO $60,000 FOR YOUR FIRST YEAR. THEY TOLD YOU IT'D BE $50,000 TO $60,000 YOUR FIRST YEAR. YES. THEY LURED ME IN AND TOLD ME THAT IT WOULD BE A NICE JOB FOR ME TO DO, AND THEY COULD GET ME PLACEMENT, AND THEY COULD GET ME A JOB MAKIN' 50, $60,000 AFTER I FINISHED THE SCHOOLING. THE WHOLE CON WAS JUST TELLIN' YOU YOU'RE GONNA BE MAKING WITHIN THE NEXT YEAR ALL THIS MONEY. HOW MUCH MONEY DID YOU MAKE TOTAL? FOR THE FEW WEEKS I WAS OUT THERE DOING IT, I FIGURED I WAS MAKING ROUGHLY NINE BUCKS AN HOUR, MAYBE EIGHT TO NINE. I DON'T EVEN THINK I MADE $10 AN HOUR. WHAT THEY DO IS THEY GIVE THE NEWER DRIVERS A TON OF MILES. THEN WHEN YOU'VE BEEN THERE FOR A WHILE, AND YOU START GETTING TO THE POINT WHERE YOU'RE MAKING MORE PER MILE, THEY DON'T GIVE YOU AS MANY MILES BECAUSE THE NEXT NEW PERSON COMING IN, THEY CAN GIVE THOSE MILES TO. IF YOU'RE COMING OUT OF TRUCKING SCHOOL, AND YOU-- AND YOU'RE GONNA GO WITH A COMPANY, YOU'RE GOING TO EXPERIENCE A ROUGH A ROUGH TIME. DO YOU HAVE PEOPLE WHO'VE GRADUATED FROM YOUR SCHOOL WHO ARE ACTUALLY MAKING 60 OR $70,000 A YEAR? WE HAVE HAD. I'VE NOT TALKED TO ANYBODY RECENTLY, BECAUSE OF REDUCTION IN LOADS OUT THERE, AND THE REDUCTION OF MILEAGE. BUT I WILL TELL YOU EMPHATICALLY, I'VE HAD PEOPLE OVER THE YEARS WALK THROUGH THE DOOR AND SAY, "I MADE 70,000 THIS YEAR. I MADE SIX--" AND THEY'LL BE AT THAT RATE, THEY'RE WILLING TO SHOW YOU THEIR PAYCHECKS. NOW ABOUT JOB PLACEMENT -- YOU PRIDE YOURSELF ON JOB PLACEMENT. ABSOLUTELY. YOU DO YOU GUARANTEE JOB PLACEMENT? UM, I SMILE BECAUSE-- THAT'S ALMOST-- A REASON FOR DISMISSAL FROM NU-WAY TRUCK DRIVER TRAINING CENTERS. THERE ISN'T ANYBODY ALLOWED TO USE THE WORD GUARANTEED IN ANY WAY, SHAPE OR FORM. WE BRING THEM IN, WE QUALIFY THEM AND WE PUT MOST OF THEM TO WORK. BUT IT'S NOT GUARANTEED EVER. YET THAT WAS NOT WHAT WE HEARD, EVEN IN THE INTERVIEWS WITH THE NU-WAY STUDENTS WHO'D BEEN HAND-PICKED BY YERKES. WITH THIS SCHOOL HERE, YOU HAVE A GUARANTEED JOB WHEN YOU COME OUT. YOU THINK YOU HAVE A GUARANTEED JOB? GUARANTEED JOB. THEY DON'T ACCEPT YOU AT THE SCHOOL UNLESS THEY HAVE A POSITION FOR YOU. BUT NOBODY TOLD YOU IT WAS GUARANTEED, OR DID THEY? YES. THEY SAID THAT- WE HAVE COMPANIES THAT ARE HIRING IF YOU PASS THE TRAINING AND YOU DO WELL IN THAT, THERE WILL BE A JOB OFFERING FOR YOU. GUARANTEED OR NOT, THE JOBS -- ACCORDING TO FORMER NU-WAY STUDENT KEITH COOPER -- DIDN'T PAY THE BILLS. AFTER A YEAR OF SCRAMBLING, HUSTLING AND GOING OUT ON THE ROAD FOR WEEKS ON END, HE SAYS HE STILL LOST HIS HOUSE. LAST MONTH, COOPER QUIT HIS FOURTH -- AND FINAL -- TRUCK DRIVING JOB. HE CAME BACK HOME AND MOVED HIS FAMILY INTO A RENTAL A FEW BLOCKS AWAY. THAT MIGHT HAVE BEEN THE END OF A BAD STORY. BUT HE SAYS THERE'S ONE LEGACY OF HIS STINT IN THE BIG RIG BUSINESS THAT'S CAUSED CONTINUING TORMENT: THE STUDENT LOAN HE TOOK OUT TO PAY FOR NU-WAY. I'VE GOTTEN ALL KINDS OF THREATENING LETTERS. I'VE GOTTEN E-MAILS. I'VE GOTTEN PHONE CALLS. THEY TRIED TO EXPLAIN TO ME THAT I'M RESPONSIBLE FOR THE LOAN. COOPER COULDN'T AFFORD NU-WAY'S $6500 TUITION, BUT HE SAYS, THE SCHOOL CONVINCED HIM THEY COULD AND WOULD ARRANGE A LOAN THAT WOULD BE PAID OFF BY HIS FUTURE EMPLOYERS. THEY BASICALLY SAID, "YOU COME HERE, IT'S NOT GONNA COST YOU ANYTHING. THE COMPANY THAT YOU HIRE WITH WILL PAY YOUR WHOLE SCHOOLING FOR YOU. YOU-- YOU WILL NOT BE OUT OF ANY MONEY." ARE YOU SURE THAT THEY TOLD YOU IT ISN'T GONNA COST YOU ANY MONEY? THAT'S THE ONLY WAY I COULD DO IT. I HAD NO MONEY. I MEAN, IF THEY WOULDA TOLD ME IT WOULDA COST ME ANY MONEY WHATSOEVER, I COULDN'T A DONE IT, SO-- SO WHAT DID THEY SUGGEST? THEY SUGGESTED FOR ME TO SIGN UP RIGHT AWAY AND GET INTO SCHOOL AS SOON AS I COULD SO I COULD START MAKIN' MONEY. MANY TRUCKING COMPANIES OFFER WHAT ARE CALLED TUITION REIMBURSEMENT PROGRAMS, WHICH TYPICALLY MEANS THAT THEY MAKE MONTHLY STUDENT LOAN PAYMENTS -- OR A PORTION OF THEM --- AS LONG AS THE NEW RECRUITS REMAIN WITH THE COMPANY. THE CARRIER THAT RECRUITED COOPER STRAIGHT OUT OF NU-WAY DID COVER HIS LOAN PAYMENTS FOR THE THREE MONTHS HE WORKED AS A TRUCKER-IN-TRAINING. BUT THE REIMBURSEMENTS, HE SAYS, CEASED ONCE THE COMPANY INFORMED HIM THEY DIDN'T HAVE ANY WORK FOR HIM. NONE OF THE THREE OTHER COMPANIES THAT COOPER DROVE FOR DEEMED HIM ELIGIBLE FOR TUITION REIMBURSEMENT -- BECAUSE THEY HADN'T HIRED HIM STRAIGHT OUT OF SCHOOL. WELL, WHO THEN WAS PAYING ON THE LOAN? NOBODY. BUT YOU'RE ON THE HOOK FOR THE LOAN? YES. FOR ABOUT HOW MUCH MONEY? RIGHT NOW, I THINK IT'S UP TO ABOUT EIGHT GRAND. WAIT A MINUTE, THE SCHOOL ONLY COST $6,500. YEAH, BUT YOU'RE AT-- I THINK MY INTEREST RATE WAS 19 PERCENT.

THE PEOPLE WHO NEED RE-TRAINING MOST, LIKE KEITH COOPER, ARE OFTEN ALREADY IN A FINANCIAL HOLE -- AND THE GOVERNMENT KNOWS THAT. BACK AT MICHIGAN WORKS, WHERE WE BEGAN OUR STORY, THEY HELP THOSE STRUGGLING TO FIND NEW CAREERS BY PROVIDING FEDERAL AND STATE GRANTS TO COVER THE COSTS FOR VOCATIONAL SCHOOLS - INCLUDING TRUCKING. BUT COOPER SAYS NU-WAY STEERED HIM AWAY FROM GOVERNMENT FUNDING AND INTO A PRIVATE LOAN. THEY WERE VERY-VERY ADAMANT ABOUT IT. I HAD EVEN WENT DOWN TO MICHIGAN WORKS WHEN-- AND APPLIED TO GO DOWN TO MICHIGAN WORKS TO GET THE TRAINING FOR FREE. AND THEY TOLD ME RIGHT OUT-- THEY TOLD ME RIGHT-- RIGHT THERE WHEN I WAS SITTIN' THERE, "OH, THAT'S GONNA TAKE SO LONG. AND YOU'LL JUMP THROUGH SO MANY HOOPS THAT YOU MAY NOT EVER GET THAT MONEY." SOME OTHER STUDENTS ALSO TOLD US THEY'D BEEN PLANNING TO APPLY FOR STATE TRAINING GRANTS UNTIL NU-WAY CONVINCED THEM TO TAKE OUT A PRIVATE LOAN INSTEAD. ABOUT A WEEK AFTER I STARTED TALKING WITH THEM, THEY CALLED ME AND SAID, "YOU DON'T NEED TO WAIT TO GET APPROVAL FROM THE NO WORKER LEFT BEHIND PROGRAM AND THAT FUNDING. IT'S ONLY GONNA DELAY YOU, AND THE TRUCKING COMPANY YOU GO TO IS GONNA PAY YOUR TUITION ANYWAY. THAT'S HOW MOST OF THE STUDENTS HERE DO IT." SO THEY WERE SUGGESTING YOU TAKE OUT YOUR OWN LOAN. WELL, NO. THEY DIDN'T PUT IT THAT WAY. WHAT THEY SAID WAS-- AND THEY DIDN'T GIVE TOO MANY DETAILS, BUT THEY SAID, "THE COMPANY THAT HIRES YOU, THE TRUCKING COMPANY IS GONNA PAY YOUR TUITION." WELL, WHEN YOU CAME AND YOU GOT THE STUDENT LOAN, THE LOAN WAS FOR HOW MUCH? $5,000 INITIALLY. AND YOU NOW OWE, WITH INTEREST-- $6,780. SINCE THEN, I'VE HAD TO FILE BANKRUPTCY. IF IT WASN'T FOR MY HUSBAND, I WOULD HAVE BEEN DESTITUTE, PRETTY MUCH. I OWE THE SCHOOL ALMOST $7,000 THAT MY MOM HAS COSIGNED ON AND SHE'S PAYIN' IT RIGHT NOW. YOU KNOW, ALL OF YOU, CLEARLY INTELLIGENT PEOPLE. YOU WORKED IN THE HOUSING BUSINESS. MORTGAGE INDUSTRY, YEAH. MORTGAGES. THAT AT ANY TIME, DID YOU SAY TO YOURSELF, "THIS IS TOO GOOD TO BE TRUE?" OR ANYTHING OF THAT SORT? WELL, YOU KNOW, THE WAY THEY EXPLAIN IT TO YOU WITH THE TUITION REIMBURSEMENT AND HOW THE COMPANIES WORK, YOU KNOW, IT SOUNDS -- IT SOUNDS REASONABLE. YOU KNOW, IT SOUNDS LIKE IT MAKES SENSE. BUT THE REAL TRUE INSIDE STUFF YOU ONLY LEARN WITH EXPERIENCE. TO ME, NU-WAY IS- YOU KNOW, I DON'T REALLY CONSIDER THEM TO BE AS MUCH OF A TRUCKING DRIVING SCHOOL AS A LENDING INSTITUTE LIKE CREDIT CARD COMPANIES, OR THE ILLICIT MORTGAGE LENDING COMPANIES. THAT'S WHAT THEY'RE GOOD AT- THEY'RE GOOD AT GETTIN' PEOPLE HOOKED FINANCIALLY. TRUCK DRIVING SCHOOLS, IN MANY CASES, ARE IN THE FINANCE BUSINESS, AS ANY PROPRIETARY SCHOOL IS. WE MOVE PAPER. THAT'S WHAT WE DO. INDUSTRY INSIDER VERN FULLER SAYS PART OF HIS BOOK WARNED PROSPECTIVE TUCKING STUDENTS TO WATCH OUT FOR , AND THINK CAREFULLY ABOUT -- HOW THEY FINANCE THEIR TRAINING. THAT'S HOW WE PROPRIETARY SCHOOLS GENERATE REVENUE. INCREASING THE NUMBER OF STUDENT LOANS THAT THEY CAN WRITE OR HAVE APPROVED -- THIS IS HOW, YOU KNOW, THEY BECOME PROFITABLE. THEY'RE NOT CHARITABLE ORGANIZATIONS, AND RIGHTFULLY SO. THEY PROVIDE A SERVICE, HOPEFULLY IN MANY CASES, WHERE THEY'RE ACTUALLY PROVIDING EMPLOYMENT OPPORTUNITIES OR AT LEAST HEAVILY ASSISTING IN THAT MATTER. FULLER SAYS THE LOAN COMPANIES TYPICALLY PAY SCHOOLS AN ADVANCE ON THE TUITION FEES UP FRONT -- ANYWHERE FROM 15 CENTS ON THE DOLLAR TO DOLLAR FOR DOLLAR -- DEPENDING ON THE CREDIT QUALITY OF THE BORROWER. HE SAYS THE GOAL IS TO PUMP AS MANY STUDENTS THROUGH THE SYSTEM AS POSSIBLE -- WHETHER THEY CAN AFFORD IT OR NOT. I NEED A CERTAIN AMOUNT OF STUDENTS IN EACH CLASS TO KIND OF COVER -- LET ME JUST DO IT AS A NUMBERS GAME: I'M MOVING COMMERCE SO, LET'S JUST MAKE SURE THAT I'VE GOT ENOUGH STUDENTS ENROLLED THAT I CAN COVER THOSE WHO DEFAULT. NOW, IS IT TRUE OR NOT THAT TRUCK DRIVER TRAINING SCHOOL IS A LOT ABOUT GETTING LOANS FOR THE STUDENTS? UH, IF WERE TO SHOW YOU MY FINANCIALS, THE NUMBERS DON'T SUPPORT THAT EVEN REMOTELY, EVEN REMOTELY. IT'S NOT ABOUT FINANCING. THAT WOULD BE THE MINORITY, AT LEAST IN MY SCHOOLS. IF YOU QUALIFY AND I CAN GET YOU A JOB, THEN IF YOU WANT TO GET FINANCED, I HAVE LENDING INSTITUTIONS THAT I DO BUSINESS THAT ARE IN THE BUSINESS OF FINANCING STUDENTS WHO GO TO TRUCK DRIVING TRAINING SCHOOLS. THESE ARE OR ARE NOT LOAN COMPANIES THAT YOU OWN OR HAVE AN INTEREST IN? OH, I HAVE NOTHING TO DO WITH THESE COMPANIES. WHY WOULD ANYBODY IN THE LENDING BUSINESS LOAN AN UNEMPLOYED PERSON-- I WOULDN'T SAY DOWN AND OUT, BUT CERTAINLY DOWN, PEOPLE IN THE HOLE-- WHY WOULD THEY LOAN THEM MONEY? YOU'RE MAKING SOME ASSUMPTIONS THERE THAT PROBABLY AREN'T THAT ACCURATE. WELL, LET'S GO OVER THEM. OKAY. THE LENDING INSTITUTIONS THAT I'M FAMILIAR WITH ARE DOING BUSINESS WITH ME BECAUSE THEY ARE KNOWLEDGEABLE THAT I'M GONNA PUT PEOPLE TO WORK. WE DON'T BRING THEM INTO SCHOOL UNLESS WE CAN GET THEM A JOB. IT'S IMPORTANT. BECAUSE IF THEY DON'T GET THE JOB, THEY'RE NOT GONNA PAY THE LOAN. I WOULDN'T SAY HALF OF THEM WOULD NOT PAY IT BACK. IT MAY BE 25 PERCENT. IT MAY BE 27 PERCENT. BUT IN MY BUSINESS MODEL, I'M ANTICIPATING THAT. THAT MIGHT MEAN ANTICIPATING STUDENTS LIKE MARIANNE MALLOY. SHE'S ALREADY PUT DOWN $1000 AND IS COUNTING ON THE PROMISE OF A NEW JOB TO HELP PAY THE REST. I WAS HIRED THE FIRST WEEK I WAS IN SCHOOL. AND, YOU KNOW, THEY'RE BASICALLY GONNA PICK UP HALF OF IT PER WEEK. AND WHAT ARE YOUR LOAN PAYMENTS? DO YOU KNOW? THEY'RE GONNA BE ABOUT $138. SO, ANY DOUBT IN YOUR MIND YOU'RE GONNA BE ABLE TO PAY THEM? NO, 'CAUSE I ALREADY HAVE A JOB. YOU CONCERNED THAT YOU'LL HAVE A JOB FOR A LITTLE WHILE AND THEN IT'LL GO AWAY? OR? NO I DON'T-- THINK THAT TRUCKING INDUSTRY IS EVER GONNA HAVE PROBLEM. BECAUSE, YOU KNOW, THE STORES NEED TO BE FILLED UP, AND IT'S JUST LIKE A GIVEN. IT'S HIGH RISK PAPER. IT IS HIGH RISK PAPER. TO OFFSET THE RISKY LOANS, FULLER SAYS THE SCHOOLS TYPICALLY TRY TO FIND CO-SIGNERS WITH A SOLID CREDIT HISTORY. COSIGNERS ARE THE BACKBONE OF GETTING A STUDENT QUALIFIED FOR THE INDUSTRY. MOM, DAD, AUNT AND UNCLE, GRANDMA AND GRANDPA -- WHOEVER IS WANTING TO SEE THIS PERSON SUCCEED IN THE INDUSTRY. COSIGNERS WITH A-GRADE CREDIT HISTORY ARE NOT GOING TO ALLOW THAT LOAN TO GO INTO DEFAULT. THEY VALUE THEIR CREDIT HISTORY. YOU SAID YOUR MOTHER IS ON THE HOOK FOR THE LOAN. YEAH, SHE'S THE CO-SIGNER. WHEN YOU TALKED TO YOUR MOTHER, DID SHE HAVE ANY RESERVATIONS ABOUT THIS? SHE WENT AHEAD AND COSIGNED WITH THE LOAN THINKING IT'S A GOOD STEPPING STONE TO GETTING ME BACK ON TRACK FINANCIALLY AND SEEING HOW THINGS TURNED OUT NOW, SHE REGRETS EVER DOING IT. I REGRET GOING TO THE SCHOOL. AND INTEREST CONTINUES TO ACCUMULATE ON THE UNPAID PORTION OF THE LOAN? YUP. AND YOU SAID YOU DIDN'T HAVE A COSIGNER. NO, BUT I HAD A1 CREDIT. I HAD A1 CREDIT, BUT THEY MADE ME GIVE 'EM SIX REFERENCES -- WITHOUT A COSIGNER.

WHY WOULD THEY NEED SIX REFERENCES? I'M NOT SURE. THEY WANT TO COME TO SCHOOL. THEY WANT US TO FIND A WAY TO FINANCE THEM. SO WHEN WE LOOK AT THEIR FINANCIALS AND WE MAY SUBMIT IT TO THE LENDING INSTITUTION. AND THEY'LL COME BACK TO US AND SAY, WELL, THEY'LL NEED A COSIGNER. IF YOU'RE DOING THAT LONG ENOUGH, YOU MAY KNOW THAT UP FRONT. I'M GOING TO NOTE -- YOU'VE TOLD ME YOU'RE NOT IN THE LOAN BUSINESS. YOU ARE IN THE BUSINESS OF HELPING PROSPECTIVE STUDENTS GET LOANS OR ARRANGE FOR LOANS. RIGHT. BUT YOU'RE NOT IN THE LOAN BUSINESS?

I OWN A FINANCING COMPANY, YES, BUT-- WELL WE PROBABLY SHOULD STRIKE THAT. THAT'S ALL RIGHT --GO AHEAD. WE SHOULD PROBABLY STRIKE THAT. OKAY. GO AHEAD. BUT I'D ASK YOU IF YOU'RE IN THE LOAN BUSINESS. I'M NOT IN THE LOAN BUSINESS. ALL RIGHT. YOU'RE NOT IN THE LOAN BUSINESS. BUT, I MEAN, IN THE, I'M NOT IN THE BIZ-- LOAN BUSINESS IN THE TEXT THAT YOU'RE-- YOU'RE ASKING ME. I UNDERSTAND. OKAY. YOU'RE NOT IN THE LOAN BUSINESS TO MAKE LOANS TO STUDENT TRUCK DRIVERS? THAT'S CORRECT. I'M NOT IN THE BUSINESS FOR THAT REASON. AFTER THE INTERVIEW, WE SEARCHED MICHIGAN'S PUBLIC RECORDS AND FOUND THAT CLINT YERKES WAS THE REGISTERED AGENT FOR A COMPANY CALLED "STUDENT FIRST SERVICES LLC." LAST SPRING, KEITH COOPER RECEIVED A LETTER NOTIFYING HIM THAT THE FINANCING COMPANY HAD TRANSFERRED HIS STUDENT LOAN. THE NEW LENDER -- STUDENT FIRST SERVICES, LLC. THE OUTSTANDING BALANCE INCLUDING INTEREST IS MORE THAN $8300. WELL, WE'RE SITTING HERE ON A PRETTY COLD NIGHT IN A GARAGE WITH NO HEAT. AND YOU'RE BEING KIND ENOUGH TO GO THROUGH THIS INTERVIEW. WHY ARE YOU DOING IT? I DON'T WANT TO SEE PEOPLE MAKE THE SAME MISTAKE I DID. THIS COST ME EVERYTHING. I HAD NOTHING. I MEAN, THEY SHOWED ME THAT THERE WAS LIGHT AT THE END OF THE TUNNEL. THERE'S NOT. IN THE TRUCKING INDUSTRY TODAY, THERE'S NO HOPE FOR YOU TO MAKE ENOUGH MONEY TO SUPPORT YOUR FAMILY, AND TAKE CARE OF YOUR KIDS, AND MAKE YOUR HOUSE PAYMENTS, AND PAY YOUR BILLS. I COMPLAINED TO THE ATTORNEY GENERAL'S OFFICE. HE REFERRED ME TO A GUY THAT WAS THE HEAD OF THE DRIVER'S TRAINING PROGRAMS IN THE STATE OF MICHIGAN. AND HE CONTACTED PEOPLE AT NU-WAY. SOMEBODY AT NU-WAY SENT HIM A LETTER SAYING, "YOU KNOW, NONE OF THAT'S TRUE. WE DO EVERYTHING ON THE UP AND UP HERE." AND THE GUY WROTE ME BACK AND SAID, "I CAN'T SEE WHERE THERE'S A PROBLEM HERE, MR. ADKINS. THEY SAY THEY'VE DONE NO WRONG." THAT WAS THE END OF IT. WELL, YOU KNOW, WE'RE AT THE END HERE. I REALLY APPRECIATE YOU TAKING THE TIME TO BE WITH US THIS MORNING. IS THERE ANYTHING YOU WANT TO SAY ABOUT THIS THAT YOU THINK PEOPLE OUGHT TO KNOW THAT YOU HAVEN'T COVERED? I WOULD SAY THAT I THINK THIS REPORT RIGHT NOW THAT YOU'RE DOING IS GONNA SPEAK FOR ITSELF. I THINK THAT YOU'RE GOING TO GET FLOODED WITH E-MAILS WITH PEOPLE WHO'VE GONE THROUGH THIS KIND OF A SITUATION. I MEAN, YOU HAVE ONE SIDE OF THE COIN, YOU KNOW, PLAYING DEVIL'S ADVOCATE IS THERE'S THE WHOLE "BUYER BEWARE," RIGHT? THE OTHER SIDE OF THE COIN IS FROM WHERE I SIT IS THAT I TOOK OUT A LOAN WITH THEM IN CONSIDERATION FOR A RETURN ON THAT LOAN, AND I DIDN'T GET IT. EVEN IF I HAD HAD TO PAY BACK THE TOTAL LOAN, HAD I GOTTEN WHAT I'D BEEN PROMISED, THE $50,000 A YEAR JOB, THEY COULD HAVE EVEN PAID ME $30,000, $20,000, $30,000. I WOULDN'T HAVE HAD A PROBLEM, BUT BECAUSE THEY DIDN'T, I JUST FEEL CONNED, YOU KNOW. I FEEL LIKE THEY JUST LIED TO ME AND TOLD US ALL THIS BIG LIE. AND THEN, THEY JUST LEAVE YOU OUT THERE DANGLING AROUND AND-- AND WHAT ARE YOU SUPPOSED TO DO NOW? IN THIS INDUSTRY, I'VE BEEN THE GOOSE THAT LAYS THE GOLDEN EGG. VERN FULLER IS STILL WORKING IN THE INDUSTRY AND SAYS THERE WILL ALWAYS BE A TRUCKING SCHOOL SOMEWHERE IN THE COUNTRY LOOKING TO HIRE SALESMEN LIKE HIM. IT'S JUST BUSINESS. ENROLLMENTS HAVE BEEN HEALTHY. PROFITS HAVE BEEN LARGE. IT'S BEEN A VERY LUCRATIVE POSITION FOR MY EMPLOYER TO HAVE ME AS PART OF THE TEAM. AS FOR KEITH COOPER SAYS HE'S FEELING A LITTLE LESS DESPERATE LATELY. HE'S HOME WITH HIS FAMILY FOR CHRISTMAS AND LAST WEEK, HE LANDED A CONSTRUCTION GIG THAT PAYS $18 AN HOUR. FOR HOW LONG? NOBODY KNOWS. IF A FRIEND OF MINE CAME AND SAID, "LISTEN, I HEAR ABOUT THESE TRUCK DRIVING SCHOOLS. TRUCKING IS BIG BUSINESS, BIG IMPORTANT PART OF AMERICAN TRANSPORTATION. THEY GOTTA NEED DRIVERS. AND I'M HEARING THAT HE CAN GO TO TRUCKING SCHOOL AND MAKE IT." WHAT WOULD YOU SAY TO HIM? GIVE HIM MY NUMBER. LET ME TALK SENSE TO HIM.

TRUCK DRIVER TRAINING IS NOT ONLY BIG BUSINESS IN MICHIGAN BUT ALL ACROSS THE COUNTRY. AND WE'RE ALL PAYING FOR IT. FEDERAL WORKFORCE DOLLARS PAID TO TRAIN 13,000 NEW TRUCK DRIVERS IN 2008 ALONE - MORE THAN ANY OTHER SINGLE OCCUPATION. NOW COMING UP NEXT, A STORY ABOUT SMALL INVESTORS WHO LOST A FORTUNE ON WALL STREET, TRYING TO GET THEIR MONEY BACK. THAT'S STRAIGHT AHEAD.

OVER THE PAST YEAR MILLIONS OF AMERICANS HAVE WATCHED THEIR NEST EGGS DISAPPEAR, SOMETIMES OVERNIGHT, IN THE TURBULENT FINANCIAL MARKETS. FOR THE MOST PART, INVESTORS GO INTO THE STOCK MARKET KNOWING THE RISKS, THEY KNOW THERE ARE NO GUARANTEES, AND THAT IF THEIR INVESTMENTS DROP IN VALUE, THEY HAVE TO LIVE WITH THE LOSSES. BUT NOT ALL FINANCIAL LOSSES ARE A NATURAL PART OF THE UPS AND DOWNS OF THE STOCK MARKET, SOME INVESTORS ARE TAKEN ADVANTAGE OF OR THEY SAY, EVEN CONNED BY THEIR BROKERS.

IN 2005 GERRY LANZALOTTO, A RETIRED FINANCIAL OFFICER LIVING IN NORTHERN NEW JERSEY, WANTED TO INVEST SOME OF HIS LIFE SAVINGS...SO HE CALLED UP CHARLES SCHWAB, THE NATION'S LARGEST DISCOUNT BROKERAGE FIRM AND WAS CONNECTED TO A BROKER. I'M BASICALLY A CONSERVATIVE INVESTOR. A TRADITIONAL INVESTOR. AND I SAID, "YOU KNOW-- I DON'T WANT TO LOSE ANY MONEY HERE. I WANT TO MAKE SURE THIS IS SECURED." AND HE REAFFIRMED THAT. IN FACT, HE SAID, "THIS-- THIS FUND OFFERS A MINIMAL RISK WITH A BETTER THAN AVERAGE RETURN." I WAS VERY EMPHATIC ABOUT BEING SAFE WITH THE INVESTMENT. AGAIN, BECAUSE I'M RETIRED. AND- FOR ME TO LOSE A CHUNK OF MONEY WOULD BE DIFFICULT FOR ME TO RECOVER. WHEN YOU STARTED SAVING FOR YOUR RETIREMENT, WHAT WERE YOUR GOALS? FINANCIAL INDEPENDENCE. MY INTENTION WAS TO-- TO MAKE SURE I HAD ENOUGH TO LAST ME - WHATEVER MY LIFETIME WAS GONNA BE. HE SAYS HE WAS ACTING ON INFORMATION PROVIDED BY A BROKER WHEN HE INVESTED 158 THOUSAND DOLLARS IN A BOND FUND PROMOTED AS LOW RISK. THE BROKER'S PITCH WAS THAT HE'D GET A SLIGHTLY BETTER RETURN THAN A SAVINGS ACCOUNT, WITHOUT THE VOLATILITY OF THE STOCK MARKET. THEN IN THE SPRING OF 2008 ITS VALUE TOOK A SUDDEN NOSEDIVE. DRAMATIC DROP, LIKE 19 PERCENT.

WELL, YOU OPEN IT UP AND YOU SAW "19 PERCENT." WOW. AND THEN IN A SPACE OF ABOUT A MONTH AND A HALF, IN-- BETWEEN MARCH AND APRIL-- MIDDLE OF APRIL, I LOST 23 PERCENT. MORE THAN A FIFTH? YEAH. AND-- AND THAT ISN'T MY DEFINITION OF MINIMAL LOSS OR MINIMAL RISK. THE FUND IS CALLED YIELD PLUS. SCHWAB DESCRIBED THE FUND AS A "MONEY MARKET EQUIVALENT" AND AS A "SMART ALTERNATIVE TO CASH." YIELD PLUS WAS MARKETED AS A GOOD INVESTMENT FOR RETIREES, OR FOR FAMILIES THAT WANTED TO KEEP THEIR CASH SAFE FOR FUTURE EXPENSES LIKE COLLEGE TUITION. IN 2007, THE YIELD PLUS FUND WAS ONE OF LARGEST BOND FUNDS OF ITS KIND IN THE COUNTRY, WITH ASSETS OF MORE THAN 13 BILLION DOLLARS. BUT IN MARCH OF 2008, ITS VALUE BEGAN TO SINK. TURNS OUT THAT WHILE SCHWAB MARKETED YIELD PLUS AS SAFE, IT ACTUALLY HAD A WHOPPING 45% OF THE FUNDS ASSETS IN MORTGAGE BACKED SECURITIES, THE RISKY INVESTMENTS THAT BROUGHT ABOUT THE HOUSING COLLAPSE. INVESTORS LIKE LANZALOTTO LOST A TIDY SUM. I WOUND UP SELLING THE FUND-- AND TOOK A LOSS OF ABOUT 30 PERCENT. ABOUT A THIRD-- ROUGHLY ABOUT A THIRD OF THE FUND, $47,000, $48,000, SOMETHING LIKE THAT. IF-- UNDERSCORE THE WORD IF-- IF HE HAD SAID TO YOU, "UNDERSTAND THIS COULD GO DOWN 20 PERCENT, COULD GO DOWN 30 PERCENT, YOU'RE AT RISK OF THAT KIND OF LOSS." WOULD YOU HAVE BOUGHT IT? NO. CATEGORICALLY, UNEQUIVOCALLY NO. LANZALOTTO SAYS HIS BROKER MISLED HIM AND HE WANTS RESTITUTION. HE'S NOT ALONE. SINCE 2007, THERE HAS BEEN A 200% INCREASE IN SECURITIES COMPLAINTS FROM INVESTORS WHO LOST BIG. WEALTHIER INVESTORS WHOSE LOSSES ARE MORE THAN A HUNDRED THOUSAND DOLLARS ARE LIKELY TO BE TAKEN ON BY A HIGH PRICED SECURITIES LAWYER. BUT FOR THE AVERAGE JOE WHO LOST LESS, THE OPTIONS ARE SLIM. JUST ABOUT THEIR ONLY CHANCE IS TO JOIN A CLASS ACTION SUIT. AND LAWYERS EXPECT TENS OF THOUSANDS OF INVESTORS TO DO JUST THAT.

IN THE LAST TWO YEARS ALMOST 400 SECURITIES FRAUD CLASS ACTIONS HAVE BEEN FILED AGAINST WALL STREET GIANTS SUCH AS SCHWAB, OPPENHEIMER AND TD AMERITRADE. BUT THE ODDS ARE THE SMALL INVESTORS ARE UNLIKELY TO RECOVER ANYTHING. LANZALOTTO THOUGHT ABOUT JOINING A CLASS ACTION SUIT AGAINST SCHWAB AND ITS' YIELD PLUS FUND, BUT HE CHOSE ANOTHER COURSE. PEOPLE HAVE LOST CONFIDENCE IN THE MARKETS. AND-- AND ONE OF THE THINGS THAT PEOPLE HAVE TO KNOW IS THAT WHEN THEY DEAL IN THE MARKET, THAT THE MARKET IS FAIR. AND IF THERE'S-- A WRONG OCCURS, THEY SHOULD HAVE REDRESS. CONSTANTINE KATSORIS HAS BEEN TEACHING THE INS AND OUTS OF SECURITIES LAW AT FORDHAM UNIVERSITY IN THE HEART OF MANHATTAN FOR 45 YEARS. IN 1999 HE HELPED FOUND THE SECURITIES ARBITRATION CLINIC, A SPECIAL CLINIC DEVOTED TO HELPING SMALL INVESTORS WHO'VE LOST MONEY DUE TO THEIR BROKER. SO, IF SOMEBODY-- CAN AFFORD A LAWYER, THEY SHOULD GO TO THE ORGANIZED BAR. WE'RE THERE TO SCREEN CASES OF PEOPLE WHO CAN'T AFFORD A LAWYER-- AND HAVE HAD-- BEEN WRONGED. AND WE TAKE THEM, AND WE TAKE THEM ALL THE WAY. FORDHAM CLINIC IS ONE OF ONLY 14 SECURITIES ARBITRATION CLINICS IN THE COUNTRY. WHAT MAKES IT UNUSUAL FOR INVESTORS IS THAT THE BULK OF THE WORK IS HANDLED BY STUDENTS. THAT'S RIGHT, LANZALOTTO WILL BE GOING UP AGAINST CHARLES SCHWAB'S ARMY OF LAWYERS WITH THREE THIRD-YEAR LAW STUDENTS. I THINK THE SECURITIES AREA IS A HOT TOPIC RIGHT NOW. IT'S NICE TO BE IN THE-- WHATEVER THE HOT AREA IS. BECAUSE IT'S NEW, IT'S EVOLVING, THERE'S PLENTY OF WORK TO DO, AND THERE'S PLENTY OF WAYS THAT YOU CAN EFFECT CHANGE. ALEX POWIETRZYNSKI ALONG WITH KRISTEN O'CONNOR AND JEREMY SADKIN ARE THE THREE STUDENTS ASSIGNED TO LANZALOTTO'S CASE. WE DEFINITELY THINK THAT HE HAS A GOOD CASE. THROUGH WHAT WE'VE BEEN DOING HERE AT THE CLINIC, WE'VE GATHERED THAT THE FUND WAS INVESTED IN MUCH RISKIER SECURITIES AND A HIGHER PERCENTAGE THAN SCHWAB HAD INITIALLY ADVERTISED. EVEN THOUGH THEY'RE NOT YET PRACTICING ATTORNEYS, STATE LAW ALLOWS THE STUDENTS TO REPRESENT CLIENTS AS LONG AS THEY'RE SUPERVIZED BY A LICENSED ATTORNEY. PAUL RADVANY, A FORMER FEDERAL PROSECUTOR, IS NOW A LAW PROFESSOR AT FORDHAM UNIVERSITY AND THE DIRECTOR OF THE CLINIC.

HE OVERSEES THE STUDENTS, AND WORKS CLOSELY WITH THEM ON THE CLINIC'S CASES. THEY HAVE VERY CLOSE SUPERVISION THROUGHOUT THE PROCESS. SO WE CAN ACTUALLY SPEND A LOT OF TIME WITH OUR STUDENTS AND OUR CLIENTS TO WORK ON THE CASES. AND NOT ONLY TRAIN BUDDING LAWYERS IN A WAY THAT'S HELPFUL TO THEM, BUT ALSO GIVE REPRESENTATION TO PEOPLE WHO REALLY WOULDN'T HAVE ANYWHERE ELSE TO TURN. LANZALOTTO'S CASE IS ONE OF 10 CASES THE LAW CLINIC IS HANDLING. THE STUDENTS COMMUNICATE WITH HIM ON A REGULAR BASIS AND SAT DOWN WITH HIM ONE RECENT MORNING TO DISCUSS THE LATEST DEVELOPMENTS IN THE CASE. AT AN ARBITRATION YOU WOULD NEVER COMMUNICATE DIRECTLY WITH THE OTHER RESPONDENT. THE STUDENTS DO JUST ABOUT EVERYTHING A LICENSED SECURITIES ATTORNEY DOES, SUCH AS INVESTIGATE CASES, ANALYZE FINANCIAL DOCUMENTS, ADVISE CLIENTS, AND ADVOCATE IN ARBITRATION. I THINK-- ANYONE WHO'S WORKED WITH OUR STUDENTS, OR SEEN THEM IN OPERATION, YOU WOULD THINK THEY ARE REAL LAWYERS. BECAUSE THEY'RE SO PROFESSIONAL, THEY'RE SO WELL TRAINED, THEY'RE SO-- PRESENT THEMSELVES SO WELL-- THAT THEY DO AN AMAZING JOB THE CLINIC'S PREPARATION IS RIGOROUS. IN THIS MOCK MEDIATION THE STUDENTS TAKE ON THE ROLES OF THE PLAINTIFF, DEFENDANT AND THEIR LAWYERS TO ARGUE BOTH SIDES OF A COMPLEX SECURITIES CASE. THAT'S NOT AMBITIOUS, ITS UNREALISTIC. THIS IS SOMETHING THAT ENDS PEOPLE'S CAREERS. BUT THIS ISN'T JUST A CLASSROOM DEMONSTRATION, THE STUDENTS GAIN THE SKILLS THEY NEED TO BATTLE THE GIANTS OF WALL STREET -- AND IT SHOWS, THE STUDENTS WIN THE VAST MAJORITY OF THEIR CASES.

THE CLINIC HAS HELPED HUNDREDS OF INVESTORS -- IN THE LAST YEAR WITH THE FINANCIAL CRISIS HITTING HARD, THEY'VE SEEN A 200 PERCENT INCREASE IN CALLS. I THINK MORE AND MORE INVESTORS ARE REALIZING THAT THEY WERE IN INAPPROPRIATE INVESTMENTS. THAT OFTEN COMES INTO LIGHT IN TIMES LIKE THIS. BECAUSE THEY DON'T REALIZE IT UNTIL THEY GET THEIR ACCOUNT STATEMENTS AND REALIZE HOW RISKY THE INVESTMENTS WERE. NOW THERE ARE BOUND TO BE PEOPLE WHO, I SUSPECT A LOT OF PEOPLE LISTENING SAY, "WAIT A MINUTE. WHEN YOU GO TO A BROKER, YOU KNOW THERE'S GONNA BE A RISK." SO WHEN YOU LOSE, WHY DO YOU HAVE A LEGAL CASE? I THINK THAT'S A FAIR POINT. I THINK FOR A LOT OF INVESTORS, THEY KNEW WHAT THEY WERE GETTING INTO. THEY UNDERSTOOD THE INVESTMENTS. THEY WERE TOLD ABOUT THE RISKS. BUT THE INVESTORS WE REPRESENT, WEREN'T REALLY TOLD ABOUT THE RISK. AND AS A RESULT, THEY'VE LOST A LOT OF MONEY THROUGH NO FAULT OF THEIR OWN. AND THOSE PEOPLE DO HAVE SOME REDRESS FOR IT. IN ADDITION TO INVESTORS WHO DIDN'T KNOW THE RISKS, THEY ALSO COME ACROSS UNETHICAL BROKERS. THEY CAN BE-- AS BAD AS WHERE A BROKER ACTUALLY STEALS MONEY FROM A CLIENT. SO WE HAD-- BROKERS WHO MADE UP INVESTMENT, TOOK THE CLIENT'S MONEY AND BASICALLY RAN. SOMETIMES WE HAVE BROKERS WHO MAKE A TRADE THAT THE CLIENT NEVER AUTHORIZED. SOMETIMES THEY THINK 'CAUSE IT MIGHT BENEFIT THE CLIENT. BUT THEY'RE NOT REALLY ALLOWED TO DO THAT... WE ALSO HAVE CASES WHERE BROKERS, WHAT WE CALL, CHURN THE ACCOUNT. IN OTHER WORDS, THEY MAKE NUMEROUS TRADES OF STOCKS SOLELY FOR THE PURPOSE OF GAINING A COMMISSION, A FEE FOR THEMSELVES. BUT OTHER CASES ARE AS, SUCH AS THIS ONE, WHERE-- THE COMPANY MISREPRESENTS AN INVESTMENT OR THE RISKS OF INVESTMENTS. INSTEAD OF BEING TRIED IN A COURT OF LAW, THE CLINIC'S CASES ARE SETTLED IN ARBITRATION BEFORE A FEDERAL REGULATORY AUTHORITY. THE ARBITRATION HEARING IS THE CULMNATION OF MANY MONTHS OF WORK AND A CHANCE FOR THE STUDENTS TO GO UP AGAINST THE BIG BOYS. OUR STUDENTS GET A FABULOUS EXPERIENCE FROM THIS, A CLINICAL EDUCATION. THEY TRY CASES AGAINST SOME OF THE LEADING ATTORNEYS IN THE COUNTRY. AND THIS IS-- EXPERIENCE THAT YOU JUST COULD NOT DUPLICATE FOR. THEY'RE GOING UP AGAINST THE LAW FIRMS? THEY'RE DEFENDING PEOPLE SUCH AS. OH, SURE. GO AGAINST THE F. MERRILL LYNCH? ABSOLUTELY. CHARLES SCHWAB? ABSOLUTELY. AND THEY HOLD THEIR OWN. MOST OF THE CLINICS GOT THEIR START IN THE MID-1990S WHEN THE S.E.C. TOOK AN INTEREST IN HELPING SMALL INVESTORS. THEY GOT ADDITIONAL FUNDING IRONICALLY FROM SETTLEMENTS NEW YORK'S ATTORNEY GENERAL WON PROSECUTING WALL STREET FIRMS IN THE LAST DECADE. THAT'S WHY 11 OF THE 14 SECURITIES ARBITRATION CLINICS ARE AT UNIVERSITIES IN NEW YORK STATE, THE OTHER THREE ARE AT UNIVERSITIES IN ILLINOIS, CALIFORNIA AND PENNSYLVANIA. THAT LEAVES SMALL INVESTORS IN MOST OF THE COUNTRY WITH LITTLE HOPE OF RESTITUTION.

SOME MIGHT ARGUE THAT CLIENTS LIKE LANZALOTTO ARE GETTING A BETTER DEAL THAN IF THEY'D BEEN TAKEN ON BY A LAW FIRM. THERE ARE THREE STUDENTS AND TWO SUPERVISORS ASSIGNED TO THIS ONE CASE. AT A FIRM, AN ATTORNEY COULD HAVE MANY DIFFERENT CASES. AND THE CLIENT WOULDN'T GET THE PERSONALIZED ATTENTION THAT HE GETS HERE AT THE CLINIC FROM US. HAVING A CLIENT IS A BIG RESPONSIBILITY. BUT IT'S ONE THAT I WANTED TO TAKE ON. IT'S EASIER FOR ME TO WAKE UP AND COME INTO THE CLINIC AND PUT IN SEVERAL HOURS OF WORK BECAUSE I FEEL LIKE IT'S GOING TO SOMETHING PRODUCTIVE AND POSITIVE AND I'M HELPING SOMEONE. WELL, HOW DO YOU FEEL ABOUT YOUR CASE BEING HELD BY STUDENTS? DID YOU GO THROUGH A PERIOD WHERE YOU'RE SAYING, "WHAT AM I DOING. I'M IN THE HANDS OF THESE STUDENTS. AND I'VE GOT $47,000 ON THE LINE." THAT'S A LEGITIMATE CONCERN AND I GOT TO TELL YOU, I THINK-- THEY WERE DOING A VERY GOOD JOB. IN-- IN MY LAYMAN'S EYES. I'M NOT AN ATTORNEY, BUT I FELT VERY COMFORTABLE IN THEIR HANDS. I STILL DO. OFFICIALS AT SCHWAB DECLINED TO COMMENT BECAUSE OF "ONGOING LITIGATION." THE STUDENTS WILL TAKE GERRY LANZALOTTO'S CASE INTO ARBITRATION IN APRIL. THEY HOPE TO GET ALL OF HIS MONEY BACK, PLUS INTEREST AND ALL RELATED FEES. DUE TO INCREASED DEMAND 4 MORE CLINICS ARE BEING OPENED AT UNIVERSITIES IN MASSACHUSETTS, CALIFORNIA, FLORIDA AND WASHINGTON, D.C.

I'LL BE BACK IN A MOMENT WITH A FINAL THOUGHT.

AND NOW A FINAL THOUGHT. SINCE WE REPORTED OUR FIRST TRUCKING INVESTIGATION WE HAVE GOTTEN A LOT OF FEEDBACK FROM YOU, OUR VIEWERS. WE HAVE ALSO GOTTEN SOME GOOD LEADS ON OTHER ASPECTS OF THE TRUCKING BUSINESS WHICH WE PLAN TO BRING TO YOU IN THE NEW YEAR. OUR GOAL AT DAN RATHER REPORTS IS TO BRING YOU INVESTIGATIVE REPORTING YOU WON'T FIND ELSEWHERE AND TO OFFER FRESH PERSPECTIVES ON LARGER ISSUES LIKE THE ECONOMY AND THE WAR IN AFGHANISTAN. WE REALLY APPRECIATE YOU BEING PART OF THE PROCESS. YOU CAN CONTINUE TO CONTACT US AT VIEWER@HD.NET TO SHARE YOUR THOUGHTS AND STORY IDEAS. WE HAVE ALSO STARTED TO POST REGULARLY ON TWITTER TO PROVIDE A BEHIND-THE-SCENES LOOK AT OUR REPORTING, AND MANY OF YOU HAVE USED OUR FACEBOOK PAGE TO GIVE US FEEDBACK AND ENGAGE IN DISCUSSIONS WITH FELLOW VIEWERS. OUR HOPE IS THAT OUR REPORTS HELP BEGIN CONVERSATIONS NOT END THEM. SO ON THAT NOTE, WE THANK YOU FOR YOUR CONTINUED SUPPORT. AND WISH YOU A JOYFUL, MEANINGFUL HOLIDAY SEASON.

FROM NEW YORK FOR HDNET DAN RATHER REPORTING

GOOD NIGHT.