Parent company profile
The Brown Schools
The Brown Schools is a parent company (defunct) based in Austin, TX. Kids Over Profits has records of 18 programs it has run in 8 states, 4 of them open.
History
Year by year
From the records: deals and takeovers, the programs it ran, and the deaths, lawsuits, inspection findings and news stories from the years it ran them. Point at an event, or tap "More about this", for the details.
1940
Founded
Founded
Woodbury Reports, announcing the CEDU deal in 1998, gave 1940 as the year The Brown Schools were founded. The company was based in Austin, Texas, and ran treatment centers mainly in the South.
1997
Opened OnTrack Wilderness Program
1998
Bought a controlling interest in CEDU
Bought a controlling interest in CEDU July 31, 1998
On July 31, 1998, The Brown Schools of Austin, Texas, and the CEDU Family of Services of Monterey, California, made a final agreement to combine; Woodbury Reports headlined it as Brown buying a controlling interest. CEDU then had six schools in North Idaho and Southern California. The Spokesman-Review later reported, citing the Austin American-Statesman, that Brown paid about $72 million.
2000
Closed The Brown Schools of Idaho
2001
Closed OnTrack Wilderness Program
2002
A 17-year-old died after restraint in its Texas wilderness program
- OnTrack
A 17-year-old died after restraint in its Texas wilderness program
A 17-year-old enrolled in a Brown Schools wilderness program in Texas died after being restrained by at least three staff members, according to a 2003 Austin American-Statesman article cited by the Spokesman-Review. The Chicago Tribune in January 2004 named the program as OnTrack and said it was no longer owned by Brown and was still in litigation.
2003
Sold six psychiatric facilities to Psychiatric Solutions for $63 million
Sold six psychiatric facilities to Psychiatric Solutions for $63 million April 2003
Psychiatric Solutions, Inc. paid $63 million for six inpatient behavioral health facilities from The Brown Schools, three of them hospitals in Texas, adding 895 licensed beds. The FTC's early termination notice for the transaction lists The Brown Schools, Inc. among the acquired entities. Brown kept its education programs, including the CEDU schools.
The Brown Schools at San Marcos passed to Psychiatric Solutions, Inc.
Psychiatric Solutions, Inc. began running it as The Brown Schools stopped.
2005
Filed Chapter 7 and closed its 11 schools
Filed Chapter 7 and closed its 11 schools March 25, 2005
Brown Schools Inc. filed for Chapter 7 liquidation in Delaware bankruptcy court on a Friday in late March 2005, closing its 11 boarding schools and educational facilities in Texas, Idaho, California, Florida and Vermont. About 300 students in CEDU's seven schools were sent home and about 300 people in North Idaho lost their jobs. The filing listed debts of $10 million to $50 million, including a $1.5 million arbitration settlement among the largest creditors.
2019
Closed Shadow Mountain Behavioral Health System
Programs it has run
18 on record, open ones first.
- Cumberland Hospital for Children and Adolescents
- Letot Center
- The Brown Schools at Cedar Springs
- The Brown Schools at West Oaks
- Dallas County Juvenile Detention Center
- Elaine Gordon Treatment Center
- Hill Country Place
- OnTrack Wilderness Program
- Seguin Community Living Center
- Shadow Mountain Behavioral Health System
- The Brown Schools at High Point
- The Brown Schools at Laurel Ridge
- The Brown Schools at San Marcos
- The Brown Schools at the Oaks
- The Brown Schools of Idaho
- The Brown Schools of Montana
- The Brown Schools of San Juan
- The Brown Schools Rehabilitation Center
People
The people the network map ties to the company, with their other jobs in the industry.
-
Marguerite Sallee
CEO
Elsewhere in the industry
- Tennessee Department of Human Services commissioner
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Rae Ann Knopf
executive director CEDU Family of Services
Elsewhere in the industry
- VisionQuest Staff, before 1998
- Bromley Brook School Founder and Executive Director, Founding Head of School, 2004
- Aspen Education Group Staff, before 2009
- Cedu Staff, before 2009
- King George School Former Head of School (1998)
- Vermont State Board of Education deputy commissioner of education
- Bill and Melinda Gates Foundation senior program officer GPA North America
1 other person connected to the company
- Mack Wigley, mental health worker
Ownership
Owned by
Companies it has owned
News coverage
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Nearly 650 Laurel Ridge Treatment Center employees to be laid off
Laurel Ridge Treatment Center is laying off nearly 650 employees due to being cut off from Medicaid and Medicare payments over safety violations. The facility has previously been reported to have staffing shortages and unsecured items that could be used for self-injury. The layoffs will be effective June 26.
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Laurel Ridge Treatment Center faces Medicare, Medicaid termination over safety violations
The Laurel Ridge Treatment Center in San Antonio is facing the termination of its Medicare and Medicaid agreements following federal and state investigations into repeated safety violations. Reports highlighted serious concerns regarding patient well-being, including staffing shortages, inadequate check-in times, and the presence of unsecured items that could lead to self-harm. While federal funding for new admissions is set to end on April 30, 2026, the facility remains open and operational, with leadership stating they are working to address compliance issues and ensure that current patients continue to receive uninterrupted care. State officials are also assisting in finding alternative placements for those impacted to ensure their safety and continued support during this transition.
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Troubled Teen Industry Rocked by Lawsuits, Sexual Assault Charges
Former patients have filed lawsuits against Universal Health Services Inc., alleging physical, sexual, and psychological abuse at youth residential treatment centers in Illinois. The allegations include sexual assault by staff members and other patients. The company has consistently denied wrongdoing despite multiple lawsuits and large damage awards.
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Ex-Laurel Ridge Treatment Center CEO faces 6 child sex charges in North Carolina, records indicate
Jacob Cuellar, former CEO of Laurel Ridge Treatment Center in San Antonio, was arrested in North Carolina on six child sexual abuse charges involving offenses alleged to have occurred between 2001 and 2008. He also faces a pending charge in Bexar County, Texas, for continuous sexual abuse of a child. Cuellar bonded out in North Carolina and is allowed to return to Texas for trial. His prior criminal history includes a 1999 conviction for preparing an obscene photo.
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Universal Health Services Faces Significant Damages Over Child Sexual Abuse Allegations at Behavioral Facilities
Universal Health Services (UHS) faces a combined $895 million in damages from recent judgments and settlements related to child sexual abuse allegations and negligence at its behavioral health subsidiaries, Cumberland Hospital for Children and Adolescents and Pavilion Behavioral Health System. The health system is pursuing post-trial motions and appeals while managing financial exposure highlighted by recent Senate investigations into residential facility practices.
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Educating Dallas County Incarcerated Youth is a Unique Challenge
The article describes the educational programs offered to incarcerated youth in Dallas County, including core academic instruction, special education, English as a second language, and vocational training. It notes challenges such as grade repetition, learning disabilities, and limited funding, while highlighting some success stories of graduates who have transitioned to productive adult lives.
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Running My Anger: The Legacy of CEDU
An anonymous survivor recounts their confinement at the CEDU residential facility in the San Bernardino Mountains and examines the institution's origins, its ties to Synanon, and decades of documented abuses and regulatory failures. The article details how CEDU operated under the guise of therapeutic education while utilizing confrontation tactics, leading to eventual financial collapse and closure following widespread allegations.
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Where Things Stand: Troubles With Private Mental Hospital Conglomerate
Psychiatric Solutions Inc., a major private mental health care provider operating across 31 states, faces multiple legal challenges, regulatory scrutiny, and a Justice Department investigation following reports of patient deaths, safety violations, and employee disputes. Government and state inspections revealed deficiencies in staffing, supervision, and worker training linked to incidents of patient harm across various facilities.
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Founders Outline Background and Opening Plans for Academy at Canyon Creek
An interview details the planned January 2006 opening of the Academy at Canyon Creek, a residential youth facility in Springville, Utah. Founders discuss their professional backgrounds in behavioral healthcare and juvenile administration, stating an initial licensing capacity of 64 residents to manage growth.
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Brown Schools Inc. Shuts Its Doors
Brown Schools Inc., a for-profit operator of therapeutic education and boarding programs for teenagers, abruptly filed for Chapter 7 bankruptcy liquidation, resulting in the immediate closure of its 11 boarding schools and educational facilities across multiple states. The company listed significant debts alongside ongoing lawsuits claiming student abuse and neglect, including allegations related to a 2002 fatality at a company wilderness camp in Texas.
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Seen and Heard - October 2001
This industry newsletter compilation details various administrative updates, staff appointments, program expansions, and leadership changes across multiple therapeutic boarding schools, wilderness programs, and youth residential facilities for October 2001. Notices include new program accreditations, facility curriculum updates, and personnel transitions within the troubled teen industry.
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Seen 'n Heard - October 2001 Issue (page 1).
The October 2001 issue of Seen 'n Heard reports a series of updates from various private schools and wilderness programs, including new leadership appointments, program openings, and accreditation approvals. No incidents of abuse or misconduct are reported. The piece serves as a directory of industry developments.
Lawsuits
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Court record - The Brown Schools
Outcome: Court granted in part and denied in part the defendants' motions to dismiss the Second Amended Complaint.
The Chapter 7 trustee for The Brown Schools and its affiliated entities brought an adversary proceeding against private equity owners, former directors, and legal counsel alleging multiple financial claims including breach of fiduciary duty, fraudulent and preferential transfers, and corporate waste following the debtors' bankruptcy. This document is a memorandum opinion addressing the defendants' motions to dismiss the Second Amended Complaint. The bankruptcy court evaluated various claims, previously dismissing some and granting leave to amend others, and prepared to rule on the remaining matters.
Business filings
This company's registrations with the states, as their business registers list them.
The Brown Schools, Inc.
Foreign profit corporation, document F97000006548, filed December 11, 1997, inactive. Federal employer number 74-2842483. Florida's record of it
- Principal address
- 1407 West Stassney Lane, Austin, TX, 78745
- Officers on file
- Robert J Naples, President, Director
- Rod Young, Secretary
- George Mccown, Director
- John P Docherty, Director
- Bob Hellman, Director
- Emil J Henry, Director
- Registered agent
- C T Corporation System
Filings since it was formed
- September 16, 2005: Revoked for annual report
Deaths on record
Young people who died at, or after being in, one of its programs.
- Diane Harris
Documents
Filed under its programs
2 documents across 2 programs: inspection reports, court records, clippings and more, each on its program page.
From the Unsilenced archive
1 document about The Brown Schools that Unsilenced collected and Kids Over Profits does not hold a copy of. They open on Unsilenced's Google Drive. Their whole folder: The Brown Schools.
We have questions about The Brown Schools
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Materials and links
Reference and research
From SCIAD NET.
Business or property records
Websites
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