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Eighteen parents and seven financial-aid advisers in the Chicago area have been charged with federal student-aid fraud for allegedly obtaining more than $2.6-million in funds by purposefully underreporting their income on financial-aid applications. Two of the aid advisers worked at colleges.

At a Congressional hearing in April, the department's inspector general revealed that the agency has lost track of at least $450-million in the past three years. Much of the money was lost in duplicate payments to grant recipients, states, and contractors. But some of it, she said, was stolen or improperly spent by department employees and contractors.

Japan. Kenya. Mexico. United Kingdom. USA: People from the Kenyan Ministry of Education participated in selling fake diplomas. In the USA and Mexico, students buy term papers and admissions essays online. People propose to take tests for others in China.

The U.S. Education Department last week proposed new rules that would loosen a ban on incentive compensation for college recruiters and get rid of a financial-aid regulation. The proposal to eliminate the 12-hour rule follows years of debate. Distance-education providers have pushed the department and Congress to throw out the regulation, but others have cited fears that relaxing the rule would lead to fraud.

A non-profit corporation that provides a high-speed computer network to colleges in New York State agreed last month to pay the federal government $1.4-million in a lawsuit alleging that it had misused a federal grant.

The Bush administration proposed guidelines last month that would let research institutions decide whether to restrict researchers' financial interests in studies involving human subjects, and whether such interests should be reported to the research volunteers.

Nearly half of the medical-school faculty members who serve on boards charged with protecting volunteers in clinical research also serve as industry consultants, duals roles that raise concerns about potential conflicts of interest, according to a study published today in the journal Academic Medicine. The study found that 47% of the faculty members serving on university panels, also had consulted for industry within the past three years.

The professoriate is a gatekeeper, determining a student's first exposure to ethical standards, traditions. Many observers of contemporary academic culture have documented cases if irresponsible and unethical behavior within the professoriate. Examples include lateness for class, use of vulgarity in scholarly forums, showing favouritism among students, improper use of campus funds, plagiarism, sexual liaisons with students, failure to properly perform administrative duties, and, most basic, unwillingness to uphold the value of truth in teaching and research.

Northern Kentucky accused five professors of fabricating data in scholarly papers, duplicating large chunks of their own work in several papers, plagiarizing, and listing as authors a number of professors at the university who did not contribute.

A report released by the department says a project called the Distance Education Demonstration Program has shown that waiving financial-aid restrictions on distance-education providers did not lead to any problems. The rules were designed to prevent fraudulent correspondence programs from gaining access to federal student-aid money. But the report leaves out details about one instance in which an institution closed down after it took advantage of a rule waiver and was then found to be riddled with fraud.