Betsy DeVos caught assisting fraudulent for-profit colleges escape investigations

Bill Clark/CQ Roll Call/ZUMA

Back in 2016, a for-profit college under the name of DeVry University settled a lawsuit for $100 million.  That suit charged the company with misleading students about the employment status of their graduates. The man behind DeVry, Julian Schmoke, would go on to work with Betsy DeVos in the Department of Education.

DeVos later named Schmoke as the lead for the Department of Education’s Student Aid Enforcement Unit, which is tasked with investigating large-scale fraud that involves government-backed student loans. In other words, he was placed in charge of stopping crooks like himself.

Did Schmoke have a change of heart and go on to crack down on for-profit schools that are lying to and stealing from students? Of course not.

According to a new report from the New York Times, Schmoke seems to be helping these for-profit universities in their criminal behaviors. The unit was scaled down to only a 3-person team and at least two major investigations were simply closed.

To top it off, DeVos hired three former employees from the companies that were being investigated so that they could help run the Department of Education.

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All of this is reminiscent of the President’s own legal troubles with his former for-profit college “Trump University.” Trump previously had to pay $25 million in a settlement after students from his “university” sued for misleading claims. Trump had promised his students a “world-class business education” which none of them received.

Neither Schmoke or DeVos would answer questions about the matter.


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