Grover Norquist calls for SEC investigation of Steve Eisman
By Lawrence Delevingne
Tue Jun 7, 2011
The powerful Republican lobbyist alleges that the Frontpoint manager profited from advanced knowledge of new Department of Education regulations affecting for-profit education companies.
Grover Norquist, the conservative political operative and president of lobbying and advocacy group Americans for Tax Reform, has joined others in calling for the U.S. Securities and Exchange Commission to investigate FrontPoint Partners hedge fund manager Steve Eisman for his role in shaping—and theoretically profiting from—new Department of Education rules governing for-profit colleges.
“There is reason to believe that [working with the Department of Education] afforded Mr. Eisman and other investors intimate, inappropriate knowledge about the forthcoming gainful employment rule. Traders were then able to monetize this information by short-selling for-profit institutions’ stocks,” wrote Norquist in a letter Monday to SEC enforcement director Rob Khuzami.
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