By Nancy Zuckerbrod, The Associated Press
An Education Department official placed on leave over a potential conflict of interest in his management of the government’s student loan program filed disclosure forms that raise questions about the department’s oversight of its own employees.
The forms, released by the department late Thursday, show the official, Matteo Fontana, listed ownership in 2002 of stock in two companies that manage student loans: Direct III Marketing Inc. and Education Lending Group. In fact, the companies are the same; Direct III Marketing changed its name to Education Lending Group at about that time.
…On Thursday, [Edward] Kennedy said Fontana’s disclosure forms “raise grave concerns about the effectiveness and impartiality of the ethics process at the department.” He added: “The forms show that department officials were aware that Mr. Fontana held a significant financial interest in a company that he was charged with overseeing. Any American can tell you that this is dead wrong.”