Today, I asked the Securities and Exchange Commission (SEC) to investigate the activities of short sellers, including Steven Eisman, who profited from the collapse of share prices of companies that are in the for-profit education field. Evidence continues to emerge that officials of the Education Department cooperated in the shorts' campaign. The same request was previously made by Citizens for Responsibility and Ethics in Washington (CREW), and other ethics advocates. My letter reads, in part:
The Government Accountability Office (GAO) is supposed to be an objective finder of fact for the U.S. Congress. Last year it weighed in on the controversy over aid to students attending for-profit colleges with a critical study which appeared to cast aspersions on the practices of some 15 for-profit colleges. The study was ballyhooed by the Obama Department of Education that supported a double standard of regulations: one for taxpayer-supported community colleges and a much tougher one for the for-profit schools.