Beginning in 2009, the Department of Education -- mightily aided by Senator Tom Harkin's HELP Committee and a coterie of Wall Street short sellers -- laid siege to the for-profit college sector in a knock-down, drag-out battle to the finish. Their strategic objective was to seriously hobble the profitability of career schools that had devised a competitive, career pathway for predominantly at-risk, low-income, non-traditional and minority students. On June 2, in the infamous Battle of the Beltway, the Department issued its (you should excuse the expression) 'Gainful Employment' rule, which was heralded as a major blow to career schools, whose recruitment rates have since dropped precipitously.
Last August, things looked sunny for former Illinois Democratic Governor Rod Blagojevich. He and his lawyers had just obtained a hung jury on 23 of 24 corruption charges. But Justice Department prosecutors, confident they had their man, continued to pursue the case - and this time with different results. Last Monday, June 27, a Chicago federal jury, after nine days of deliberation, found the man known as "Blago" guilty on 17 of 20 charges, nearly a dozen of them related to his attempts during the fall of 2008 to fill the pending Senate vacancy left by President-Elect Barack Obama in return for campaign cash.
Karl Rodney, the organizer of the Caribbean junkets that were the downfall of Rep. Charles Rangel (D-NY), has pled guilty to lying to Congress. During the Justice Department investigation, NLPC received a Grand Jury subpoena to provide photographs, audio recordings, and other materials from a November 2008 conference in St. Maarten.
I attended the event and documented the corporate sponsorship that violated House Rules, by companies like Citigroup, AT&T and Pfizer. It was this evidence on which the House Ethics Committee admonished Rangel in February 2010, prompting his resignation from the Ways and Means chairmanship.
Rep. Alan Mollohan, whose finances were the subject of a four-year federal probe triggered by NLPC, was defeated yesterday in the Democratic primary in West Virginia’s first Congressional District. The 14-term Congressman was beaten 56 to 44 percent by state Senator Mike Oliverio, who made corruption the centerpiece of his campaign. Mollohan accused Oliverio of “spreading right-wing smears.”
The investigation began in February 2006 after NLPC filed a 500-page Complaint with the U.S. Attorney for the District of Columbia alleging that Mollohan failed to report millions in assets on his Congressional disclosure forms in order to conceal cozy financial relationships with recipients of earmarks he had arranged.
The Justice Department has confirmed that it has ended its investigation of Rep. Alan Mollohan (D-WV). The probe began after NLPC filed a Complaint with the U.S. Attorney for D.C. in February of 2006 alleging that Mollohan failed to report millions in assets on his Financial Disclosure Form (FDR) in order to conceal cozy financial relationships with recipients of earmarks he had arranged.
The closing of the four-year probe by the Justice Department comes after Mollohan voted for Barack Obama’s unpopular health care plan. Has Attorney General Eric Holder now made it legal for members of Congress to earmark money to their business partners? This is a horrible precedent.
In the uproar that followed our original allegations, Mollohan “temporarily” resigned as ranking Democrat on the Ethics Committee. I doubt that Nancy Pelosi will now try to put him back. Even she realizes that Mollohan represents everything the public loathes about Congress. Holder's letting him off the hook is sure to further inflame anti-incumbent resentment.