Ethics experts said Mr. Eitel’s position, which has not been announced publicly, could nonetheless bump up against federal rules involving conflicts of interest
and impartiality, particularly given his position as a vice president for regulatory legal services at Bridgepoint Education Inc., an operator of for-profit colleges, during federal investigations into the company.
Betsy DeVos’s Hiring of For-Profit College Official Raises Impartiality Issues -
By PATRICIA COHENMARCH 17, 2017
As chief compliance officer for a corporate owner of for-profit colleges, Robert S. Eitel spent the past 18 months as a top lawyer for a company facing multiple government investigations, including one
that ended with a settlement of more than $30 million over deceptive student lending.
In September, Bridgepoint reached a settlement with the federal Consumer Financial Protection Bureau to refund students $23.5 million
and pay an $8 million civil penalty to resolve an inquiry into whether students were deceived into taking out private student loans that cost more than advertised.
The Justice Department, according to a Bridgepoint filing with the Securities and Exchange Commission, is investigating whether the company violated Education Department limits
that bar it from receiving more than 90 percent of its revenue in federal student aid.
Bridgepoint — a publicly traded company that operates Ashford University
and University of the Rockies, enrolls roughly 50,000 students, and primarily offers online degrees — has come under frequent scrutiny by federal and state watchdogs.