But the district attorney and other officials in Lackawanna County dispute Aspect's contention. Jarbola said two received medical attention. All told, according to Jarbola, five were relocated, and those cases are being reviewed by the grand jury.
But Casey's staff pointed out that Aspect employed Burgette for 10 years, making it difficult to portray her simply as a rogue employee.
Casey said Aspect knew in October the students were in trouble and chose to ignore it. But he saved most of his anger for the State Department, which allows groups like Aspect to police themselves.
"It's about time that the State Department complete its investigation -- even as the grand jury is working -- complete the investigation, level tough sanctions and make improvements to this program in terms of oversight,"
Casey said.
In its initial statement to CNN, the State Department said when it hears of allegations, "we immediately contact the sponsoring organization involved and ask them to investigate. We gather full information and act swiftly and appropriately."
That's the problem, argue critics, who say the department has had a hands-off policy for years when it comes to foreign exchange group sponsors. When complaints are made against the sponsor, they are asked to investigate themselves.
Arkansas legislator Sue Madison said she had a law passed in her state to protect students after it was discovered some of them were forced to do manual labor, live in unfit conditions and even forced to hand over their money to host families.
"You make a complaint to the State Department and you basically never hear from them again," Madison said, explaining why she decided her state needed a law to do its own enforcement.
Watchdog Groups Struggle to Get State Department's Attention
Danielle Grijalva, director of the Committee for Safety of Foreign Exchange Students, said she once worked in the industry. The agencies, which she calls unregulated travel agents, can make millions of dollars enticing rich foreigners and lobbying for State Department grants to lure scholarship-eligible students here for a year of study.
Her group now monitors complaints. The situation in Scranton, she said, is not isolated -- nor is the State Department's initial response to the crisis.
She fields calls from parents and students alike who complain they have nowhere else to turn.
"It's self-regulated, unmonitored, under-reported," Grijalva said. "Students being raped, placed in the homes of convicted felons, placed in the homes of registered sex offenders, come to the United States and lose 20, 30, 40 pounds."
Grijalva shared e-mails with CNN which she said came from parents and students and host families -- even correspondence with the State Department managers who oversee the program.
The State Department "will not accept as a complaint any matter that is not presented to us by an involved party to the exchange agency," she was told in a 2006 e-mail by Stanley Colvin, a deputy assistant secretary for private-sector exchange.
Complaints forwarded by watchdog groups like hers, she said, are not considered by the State Department as worthy of investigation.
The State Department turned down CNN's request to talk to Colvin or other managers directly involved in managing the exchange programs.
"When we bring this to the attention of the State Department, once again, it's a business issue, they can't get involved and they continue to look the other way," Grijalva said.
Crowley said the department is not looking the other way now. He said the Scranton situation showed the department "tended to inspect by exception. Only when we were aware of dire circumstances did we send an investigator out."
Crowley said the department asked the inspector general's office to investigate Aspect but also plans to inspect its own management controls. He said that given the number of students, the department will still have to depend on sponsoring agencies to monitor the students they bring over. But he said the State Department can and will do more.
"We do recognize that the oversight of this program at the State Department was not strong enough, not aggressive enough," Crowley said.
"We were not out there in the community looking hard at where our children were. We have already taken steps to put more eyes on these homes around the country so that in the future not only will we be putting the appropriate emphasis on the agents that are responsible first and foremost for oversight we'll be looking over their shoulders as well.
"That did not happen certainly in the case of Scranton," he said.
Crowley also released a June 12 report on Aspect written by Colvin. In it, Colvin said the department has warned the industry for the past three years that it was becoming harder to find suitable host families. It said the department specifically told Aspect that an audit found the group only complying with host family screening requirements 67.7 percent of the time.
It's unclear from the report why the State Department did not stop awarding Aspect grants at that point.
After finding a number of violations in Scranton, Colvin said the state would sanction Aspect by reducing the number of students it can bring over by 15 percent. Based on the fees it charges, the penalty, Colvin wrote, will result in a revenue loss of $540,000.
However, there is no mention in the report whether Aspect will have to return any of the $1 million of taxpayer-funded grants it received for the 2008-2009 school year. The State Department did not respond to repeated requests for clarification.
Despite Conditions, Tanzanian Student Says 'Thank You'
Meanwhile, Tanzanian student Musa Mpulki has since returned home. Before he left, he told CNN he did not want to upset his mother, so he never told her that he had little to eat during his nine-month stay in the home of a 72-year-old man who had signs on his refrigerator that some food was only for family.
Although his housing situation was a nightmare, Mpulki said the students at the school made him appreciate America, and he said he appreciated the State Department grant that brought him to the United States.
"I guess I like to say, 'Thank you very much the government of the United States for to bring me here to get a good experience at the school and a good education.' "
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