More than 8000 students are set to be left in limbo as the college becomes the latest in a string of multimillion-dollar actions against the scandal-plagued vocational education industry, which has blown out to $3 billion in public debt. AIPE chief executive Amjad Khanche accepting an award from the NSW government. Credit:AIPE In December, a Fairfax Media investigation revealed that AIPE had been paid almost $1 million a graduate while its owners were named as finalists in NSW Premiers awards for business In 2014, it received $111 million in Commonwealth funding after handing out just 117 diplomas to its 8000 students hosted in a building in the Sydney's CBD. It received $10 million more in taxpayer funding in one year than the federal government's entire national package dedicated to combating domestic violence.

On Thursday, ACCC chairman Rod Sims said the consumer watchdog will allege that AIPE marketed its courses to some of the most vulnerable and disadvantaged groups in the Australian community, including consumers from low socio-economic backgrounds and consumers with intellectual disabilities. AIPE college in the Sydney central business district. Credit:Wolter Peeters One student, 21-year-old Helen Fielding, told Fairfax Media at her housing commission flat just outside Newcastle in December that she was "not good at reading". As a foster child, she had been through six different schools, had minimal literacy, and survived on half a meat pie a day. Taking in $111 million in Commonwealth funding: the Australian Institute of Professional Education college in Sussex Street. Credit:Wolter Peeters

The sales agents acting on behalf of AIPE in her home coached her on what to say over the phone during the registration process, she said. "When I was on the phone they read everything out for me to say, instead of me saying it myself," she said. Helen Fielding (left) was recruited by Australian Institute of Professional Education. Credit:Marina Neil AIPE has repeatedly denied that it had anything to do with the call that signed Ms Fielding up to $19,600 worth of Commonwealth debt on the promise of a free laptop. But internal documents have revealed that AIPE's operations manager, John Luhr, was on the other end of the phone and approved Ms Fielding's registration for the diploma of human resources management course.

The Commonwealth's estimated $4 billion in debt by 2015. The college is run by Sydney radiologist Tej Dugal, a medicine graduate from the University of Sydney and a former doctor at Royal North Shore Hospital, as well as Ajay Valanju, a real estate mogul who now owns more than 30 Sydney properties. At its head is chief executive Amjad Khanche, who has twice been feted in NSW Parliament since 2013 for his business achievements. Mr Sims said for AIPE's online courses, some people were enrolled who had limited reading and writing skills, could not use a computer, and were not able to use email. "We allege that AIPE failed to take adequate steps to ensure that it was not taking advantage of these vulnerable consumers," he said.

Senator Scott Ryan, the third federal minister to hold the vocational education portfolio in 12 months, said he welcomed the ACCC's announcement and said the government would continue to defend the rights of students and taxpayers. AIPE is the fourth college to be pursued by the ACCC in the past year. The ACCC is seeking the return of more than $460 million in taxpayer funding between Sydney colleges Unique, Empower and AIPE, and Melbourne's Phoenix Institute. A spokeswoman for AIPE said the college would provide comment after it has been served with the ACCC's pleadings and has had the opportunity to review them and consider its position.