Captain Cook College, an online diploma institution, has been fined $30 million following a Federal Court ruling that exposed its unethical enrolment practices targeting disadvantaged students. The college, acquired by Site Group International Limited in 2014 and subsequently closed in late 2016, was found to have made misleading claims to potential students since September 2015, primarily to enhance profit margins.
Justice Angus Stewart presided over the case and found both Site Group and its chief operations officer, Blake Wills, complicit in these practices. Wills is required to pay $400,000 and has received a three-year ban from corporate management. The fines must be settled within 60 days. The Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against the college in November 2018, highlighting that over 90% of enrolled students never completed their courses, with around 85% not even logging in.
The courses offered, including business and project management, led to significant financial liabilities for over 6,000 students, who accrued more than $50 million in VET FEE-HELP loans, a government scheme designed to support tuition payments. In July 2021, the Federal Court determined that the college had engaged in unconscionable conduct, resulting in appeals by the college, Site Group, and Wills to the High Court. However, the High Court upheld the original findings in August 2024.
Captain Cook College was founded in 1998 to provide online VET FEE-HELP diploma courses. In an earlier settlement with the ACCC in June 2020, former CEO Ian Cook acknowledged his role in the misconduct. He was also banned from corporate management for three years and ordered to pay a $250,000 penalty and contribute to legal costs.
The ACCC and Site Group have been approached for comments regarding recent developments.