Education Department Reportedly Probes For-Profit Colleges

Thursday, 28 Apr 2011 06:39 PM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The U.S. Department of Education is investigating the practice in which investors, in effect, bet on the failure of for-profit colleges, reports DailyCaller.com, citing unnamed sources.

The department hopes the investigation will determine whether investors’ short selling influenced how it regulated the career-college industry and whether investors obtained inside information about its actions.

Career schools are under the microscope amid mounting complaints that they gave misleading expectations to prospective students. The department has not confirmed that it is investigating the industry, although it is drawing up new regulations.

Ann Weismann of Citizens for Responsibility and Ethics in Washington says her organization has found documentation supporting allegations of short selling.

“First, the department has given a very bland, across-the-board assurance that everything is fine, suggesting that no one inside the department wanted to take a hard look,” Weisman told DC.com. “Second, since the congressional request, we have uncovered more evidence of a collusive effort to give people advance knowledge.”



© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved