President Obama’s Big Government socialism is threatening the profits of The Washington Post, and Post reporter Steven Pearlstein can remain silent no more.
Not only does a Post company now stand accused of fraudulent practices, two high-powered law firms are considering lawsuits on behalf of the shareholders of the Post against the company’s directors, including Warren Buffett and Bill Gates’ wife Melinda.
The company, Kaplan, is part of The Washington Post Company and “has provided the handsome profits that have helped to cover this newspaper’s operating losses,” admits Pearlstein in an extraordinary column. “Although we in the Post newsroom have nothing to do with Kaplan, we’ve all benefited from its financial success.”
Please understand that Kaplan is facing the threat of tough new federal regulations from the Obama Administration.
Isn’t it interesting how profits are now being defended when they benefit liberal journalists?
Pearlstein has benefited so much that he wrote a column trying to protect the profits that help pay his salary. Pearlstein, who won the 2008 Pulitzer Prize for Commentary, is playing public relations mouthpiece for Post chairman Donald Graham, in trouble for the fraudulent practices carried on under his nose by Kaplan employees. They hooked some students on loans they couldn’t afford for an education that was overvalued.
Remarkably, Pearlstein makes a conservative argument—that for-profit educational companies provided competition for public and state colleges and universities. Tell it to the Obama Administration.
On August 4, the Senate Committee on Health Education Labor and Pensions held a hearing featuring Gregory Kutz, Managing Director, Office of Forensic Audits and Special Investigations of the U.S. Government Accountability Office (GAO). The GAO found that “Undercover tests at 15 for-profit colleges found that 4 colleges encouraged fraudulent practices and that all 15 made deceptive or otherwise questionable statements to GAO’s undercover applicants.” Kaplan was one of the guilty parties.
It gets juicier: before the GAO investigated and exposed Kaplan’s deceptive educational practices, one of Kaplan’s “core values” was “integrity.” It said, “We hold ourselves to the highest ethical standards in everything we do.” Yes, and The Washington Post newspaper practices objective news reporting.
The problem, from the Post’s perspective, is that even before the scandal broke, the Obama Administration had been threatening to crack down on the for-profit universities, including Kaplan, because of their “high prices, uneven performance and shady marketing practices,” as Pearlstein put it.
The story is starting to attract the attention of other media. The New York Times reported that Kaplan has suspended enrollment at its campuses in Pembroke Pines, Florida, and Riverside, California, “where undercover investigators for the Government Accountability Office found deceptive practices by admissions officials.”
“Among the incidents uncovered at the Pembroke Pines location,” reports  the Florida Sun-Sentinel, “an admissions officer falsely told an applicant that the school had the same accreditation as Harvard and the University of Florida. The officer wouldn’t let the applicant speak to a financial aid representative until she signed an enrollment contract. And he told her not to worry about repaying student loans because ‘tomorrow’s never promised.’”
Washington Post stock fell $31.05, or 7.6 percent, in one day as a result of the Post acknowledging the bad news about Kaplan.
The Post was forced to cover the scandal, too, in a story headlined, “GAO: 15 for-profit colleges used deceptive recruiting tactics.” Kaplan’s role and relation to the Post Company were mentioned in the third paragraph.
The story also noted that, in a joint statement, Post chairman Donald E. Graham and Andrew S. Rosen, chairman and chief executive of Kaplan Inc., described the tactics revealed in the videotaped GAO interviews as “sickening.”
They claimed that “They violate in every way the principles on which Kaplan is run. The GAO and the Senate [Health, Education, Labor and Pensions Committee] have done us a favor. We will do everything in our power to eliminate such conduct from Kaplan’s education institutions.”
It’s nice to be able to get such a statement into a major newspaper. It helps when you own the paper.
But having been caught by the GAO and having learned the lessons of Watergate, Kaplan is out front on the scandal, saying:
“The actions described in the GAO report at two of our colleges are contrary to our standards and values in every way. Immediately upon learning of the incidents we initiated our own internal investigations at these schools. We have suspended enrollment at our Pembroke Pines, Florida and our Riverside, California campuses. Investigations at both campuses are ongoing.
“We will take all necessary actions—including termination—with respect to any employee found to be in violation of our clearly-outlined standards and the code of conduct that is emphasized in our repeated training and our day-to-day operations.
“The actions described in the GAO report are simply unacceptable. We will do everything we can to ensure that such incidents are not repeated anywhere at our 75 campuses or among our 16,000 higher education employees.”
Sharks in the Water
But some legal firms think more may have to be done.
Robbins Umeda LLP, a legal firm specializing in shareholder rights litigation, has announced that it is conducting an investigation “into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at The Washington Post Company” in connection with “fraudulent, deceptive, or otherwise questionable marketing practices” by Kaplan.
Another firm, the Kendall Law Group, described as “a national securities firm led by a former federal judge with attorneys that include a former U.S. Attorney,” is also interested. Its website says, “Kendall Law Group has the credentials and experience to pursue any type of complex securities litigation. The firm helps shareholders exercise their power to protect their investments when companies break the law. If you are a Washington Post shareholder, you are encouraged to contact the Kendall Law Group to learn more about your rights.”
So the trial lawyers are after the Post big time. The company, you see, has deep pockets.
Post Company directors and possible targets include Lee C. Bollinger, president of Columbia University; Warren E. Buffett, chairman of Berkshire Hathaway; and Melinda French Gates, co-founder of the Bill & Melinda Gates Foundation.
Can you see it now—Post executives and directors on the stand being asked, “What did you know and when did you know it?”
As the Pearlstein column suggests, don’t look for any Watergate-style coverage of this scandal in the Post. The paper’s reporters have a vested interest in ignoring the serious nature of the scandal because the bad news could affect Post profits and their livelihoods, even their jobs.
On the other hand, there is the possibility of a federal bailout of the Post. This time, the taxpayer dollars will have to come through an avenue other than the federal student loan program.
Consider the situation: the Washington Post, a long-time mouthpiece for the liberal wing of the Democratic Party—a paper that endorsed Obama for president—is under fire by liberal Democrats in the Obama Administration and on Capitol Hill because of the activities of its for-profit educational subsidiary, Kaplan.
You may recall that AIM broke the story that Post reporter Steven Pearlstein, now whining about the Post being under attack, was a participant in a for-profit Washington Post conference designed to attract Washington, D.C.-area movers-and-shakers. He is a true company man.
For conservative media critics, the story is heaven-sent. The Post, which gave us the Watergate scandal that brought down Richard Nixon as president, has a Watergate of its own. It’s occurring under a Democratic Administration and the basic charge against the Post is that it is making obscene profits at the expense of students and young people and federal taxpayers.
Kaplan, which boasts that “We build futures,” is in trouble as a result of the scandal and the high-flying unit is therefore threatening the viability of the Post newspaper, leading possibly to layoffs or firings of news personnel.
Kaplan has been the largest and fastest-growing division of the Post Company. Now all of that is in jeopardy and the paper’s liberal journalists are starting to scream.
Republicans Make Deals with Gay Elite
By Cliff Kincaid
“Kagan will be Supreme Court’s first lesbian” was the headline in the Howard Phillips Issues and Strategy Bulletin. It sounded provocative, but the headline was based on an article that appeared briefly on the CBS News website citing Kagan’s “well known” female partner. White House pressure forced CBS to take the item down.
Senate Republicans were afraid to raise the issue during her confirmation hearings, despite the obvious conflict of interest posed by her “sexual preference” in deciding future court cases, such as whether the American people have the right to safeguard in law marriage between a man and a woman. The hearing showed that Kagan has a militant pro-homosexual orientation in matters ranging from opposition to military recruiters on campus (because of the Pentagon’s homosexual exclusion policy) to rejection of the federal Defense of Marriage Act.
The Republican failure has come to haunt the nation in the tyrannical ruling by federal Judge Vaughn Walker that overturned a vote by the people of California which affirmed traditional marriage by passing Proposition 8. Voters in 30 states have decided that marriage between a man and woman, based on the Judeo-foundation of this nation, is worth preserving. All of those measures are now in jeopardy because of the actions of a gay judge with a huge conflict of interest.
Like Kagan, there are reliable reports that Walker is a secret homosexual.
Jim Campbell, an attorney for the Alliance Defense Fund (ADF), which defended Proposition 8, informs me, “To this point, the legal team defending the California marriage amendment has been presented only with rumors and speculation in the media. We won’t base any prospective legal position on speculation in the press.”
But Matt Barber, an attorney with the Liberty Counsel, which has been critical of the ADF’s handling of the case, disagrees. Citing a story in the San Francisco Chronicle that Walker is a practicing homosexual, Barber wrote last February that the conflict of interest helped explain Walker’s one-sided handling of the case and guaranteed that he would come down on the side of the homosexual activists.
Citing federal law that “a judge shall disqualify himself when he knows that he has a financial or any other interest that could be substantially affected by the outcome of the proceeding,” Barber argued that Walker could personally benefit from the overturning of Proposition 8 because it would give him the “right” to marry a man. Therefore, he should have stepped down, or recused himself.
The Chronicle reported, “The biggest open secret in the landmark trial over same-sex marriage being heard in San Francisco is that the federal judge who will decide the case, Chief U.S. District Judge Vaughn Walker, is himself gay.”
Walker was appointed as a judge by the first President Bush. The wife of the second President Bush, Laura, made headlines earlier this year by endorsing homosexual marriage.
America’s founders regarded homosexuality as a crime against nature and it was prohibited in the states and the military.
Rather than raise the issue of homosexuality as a factor in public policy decisions and express concern about what is happening to American values that have been on the books since our founding as a nation, some key “conservative” Republicans have decided to go over to the other side.
The homosexual Log Cabin Republicans have announced that they are holding a national dinner on Wednesday, September 22nd at the Capitol Hill Club in Washington, D.C., that will include Senator John Cornyn and Rep. Pete Sessions, who runs the GOP’s effort to elect House candidates. The Log Cabin Republicans are currently waging a legal battle against the “Don’t ask, don’t tell” policy.
Cornyn’s office says that, although the Senate still favors the Pentagon policy, he will attend anyway. “They invited him and Sen. Cornyn accepted,” stated Cornyn spokesman Charles Chamberlayne. “He will focus on issues they agree on, such as lower taxes, smaller government, reining in out of control government spending, to name a few.”
Paul Lindsay, Deputy Communications Director for the National Republican Congressional Committee, told me, “Chairman Sessions has spoken to local Log Cabin Republican chapters in Dallas, and he looks forward to meeting with members of the national organization next month. Part of his responsibilities as NRCC chairman is to meet with Republican groups that share our goal of retiring Nancy Pelosi, and this occasion is an example of that.”
According to the Log Cabin Republicans, the following individuals are also scheduled to speak at its upcoming dinner:
- Representative Judy Biggert (R-IL);
- Representative Anh “Joseph” Cao (R-LA);
- Representative Charles Djou (R-HI);
- Representative Ileana Ros-Lehtinen (R-FL);
- Grover Norquist, President, Americans For Tax Reform;
- Nick Herbert, Minister of State for Justice/Police (United Kingdom);
- Tucker Carlson, Publisher, Daily Caller, will serve as the Master of Ceremonies for the National Dinner.
The inclusion of Nick Herbert, a top member of the British Conservative Party, is an indication of where the GOP is heading.
Nick Herbert said in the speech at Cato earlier this year that “I’m especially honored to be sharing a platform with one of Britain’s most valuable exports, Andrew Sullivan.” The HIV-positive Sullivan calls himself a “gay conservative” but has married another man and was caught soliciting high-risk “bare-back” sex on the Internet.
Herbert said he looked forward to the day when “the Prime Minister of the UK or the President of the United States could just as easily be gay as black.”
David Cameron, Conservative Party leader and British Prime Minister, supported reducing the age of consent for sexual relations from 21 to 18 in 1994 and to 16 in 2000 and has followed through with a measure to erase criminal convictions related to past homosexual activity from the criminal records data base. The Cameron government has promised a “government action plan” on “transgender equality” next year.
The British group, Christian Concern for Our Nation, says that the government “has endorsed the aggressive agenda, set by the previous Government, to promote a radically pro-homosexual ideology across British society and overseas.”
British Pastor Dale Mcalpine was arrested and hauled before the British courts after a homosexual police officer arrested him on April 20, 2010 for saying that homosexuality is going against the word of God. He was held in a cell for several hours. Charges were eventually dropped.
At one time, Britain was the missionary base for the entire world, even sending missionaries to the new American colonies,” noted a Christian Broadcasting Network report on July 8, 2010. “But today, the cases of anti-Christian bigotry and discrimination have risen sharply.”
Christian Concern for Our Nation director Andrea Minichiello-Williams warned that if British Christians don’t step up now, the nation is on a path to eventually criminalize the practice of Christianity in public.
Can the U.S. be far behind with “conservative” Republicans appeasing the militant gay rights lobby?
Spotlight on the Media
CNN Confirms Leaker
Bradley Manning’s Gay Disorders
The evidence now suggests that gay soldier Bradley Manning had been cruising the homosexual subculture for several years, under the noses of his military superiors, before striking back against the Army and the United States by allegedly deciding to leak classified information.
The new information strongly indicates that the much-criticized “Don’t ask, Don’t tell,” homosexual exclusion policy was not being strictly enforced under the Bush and Obama Administrations and needs to be strengthened and not repealed.
The policy has been repealed by the House but awaits Senate action.
In an August 9 report, CNN posed the question: “how does a computer-savvy 22-year-old go from an intelligence analyst in Iraq to the man accused of the biggest military leak in American history?” CNN Pentagon correspondent Chris Lawrence investigated the private life of Bradley Manning and confirmed that this homosexuality, which was advertised on his Facebook page and in his public participation in a gay pride parade, seems to stem from Manning’s lack of a father figure in his life. His parents were divorced when he was 13 and Manning remained with his mother.
CNN’s Lawrence reported, “We know Manning moved back to the States five years ago. One night he came to this gay bar here in D.C., met another young man who had been in the Army. But this man had a very positive experience about being gay in the military and he talked to Manning about the discipline and everything else he had learned.”
Even though Manning acted openly gay, a friend of Manning’s called “Tim” by CNN said that Manning “felt verbally, emotionally abused because of his sexuality” and was “verbally abused, right from boot camp.” “Tim” said that “Brad” just “took the harassment as, well, he’s making fun of me, you know, and that’s not right and I feel bad about it.” Later, was made an Army intelligence analyst. “He said I can’t believe I’m an intel analyst. I can’t believe they made me an intel analyst.”
It is truly unbelievable. Who in the Army decided to make Manning, who was openly violating the law on homosexuality, an intelligence analyst with access to classified information?
Two years ago, “Tim” indicated that Manning became politicized and came to believe that the “discrimination” and the “Don’t ask, Don’t tell,” policy had created an uncomfortable “atmosphere” for him. However, reporter Lawrence indicating that the “discrimination” wasn’t too overwhelming because Manning erected a Facebook page where he took stands on issues such as supporting the repeal of California’s ban on gay marriage and ending the Pentagon’s homosexual exclusion policy.
He was, for all intents and purposes, violating the law. Yet he had a security clearance. How did he get it?
“Tim” told CNN: “In my opinion, I feel that sexuality, his own sexuality and what had happened to him in the military, coupled with the policy of the military played a significant role in the reason as to why he did what he did.”
This is what happens when homosexuals with personality problems and mental disorders come into the ranks.