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A seven-month investigation revealed that a number of Chile's universities are illegally operating as profit-oriented businesses. According to a report conducted by a special investigation committee, eight universities violated anti-profiteering laws amidst findings of increased salaries among executives, circulation of finances between companies under the same private ownership and outsourcing of services as means of generating revenue.

A new government report on recruiting techniques in the for-profit higher education industry finds instances of college officials urging applicants to invent children and to hide their savings as a way to leverage more federal aid.

A federal grand jury in Kansas indicted a former college-basketball coach last month on charges that he arranged for his players to receive phony academic credit and stole $120,000 in Pell Grants. The former coach faces a total of 51 years in prison and over $1.5-million in fines if found guilty of all counts.

A former Texas Tech University researcher, who was convicted of mishandling harassment complaints and cheating the university out of its share of clinical-research money, was sentenced last week to two years in prison and a $15,000 fine.

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.

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.

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.

Politicians obliged universities to hire friends in return for help in ensuring a steady flow of funds. By forging documents and bribing appropriate officials, university staff secure larger retirement checks than they are entitled to and retire before the customary age.