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
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