Behind the Headlines Video
Last summer the Department of Education proposed controversial new regulations that applied only to for-profit colleges and exempted state universities and private colleges.
The new regulations worried investors causing stock prices of for-profit schools to plummet.
We have obtained emails from the Dept of Ed that raise serious questions regarding the relationship between senior officials and stock investors.
Steve Eisman is a major Obama campaign donor and hedge fund short-seller. He profits when a stock drops in price. The more it drops, the more he earns. Eisman sent an email to a senior Education official warning that career college "stocks are [rising]" adding "I know you cannot respond." The email was forwarded to the confidential assistant to Education Secretary Arne Duncan.
The following day, a senior agency official made plans to make non-public information available to select individuals regarding new regulations ahead of the general public.
Those slated to receive this non-public information included Eisman and a business associate. Documents suggest these people were notified two days before the new rules were publicly released on July 23rd.
Many for-profit colleges saw their company stocks lose 35 to 50% of their value after the new rules were announced.
Anyone with advance knowledge of the proposed rules could have made a killing in the stock market.
It is time for the Securities and Exchange Commission and U.S. Attorney General to investigate.
Do you have a news tip that you'd like us to investigate? Fill out the form below and let us know!
Around the Web
Caught on Video! Garbageman loses his mind
Wisconsin taxpayers foot the bill for $5,000 in bureaucrats Netflix subscriptions
Europe was focusing on 'green energy' instead of watching Putin
NYT Reporter: Obama Admin worst threat to press freedom
Candidate for GOP nomination for Calif governor is registered sex offender