Hickok to Pay $50,000 in Bank-Stock Inquiry

By David J. Hoff — March 27, 2007 2 min read

Eugene W. Hickok, who was the No. 2 official in the Department of Education earlier in the Bush administration, has agreed to pay $50,000 to settle possible conflict-of-interest charges over stock he owned in a bank that participates in the federal student-loan program.

Mr. Hickok, who served as the deputy secretary of education from April 2004 until February 2005, helped oversee the program.

Authorities said he did not keep his promise to sell more than 800 shares in Bank of America Corp. when he became deputy secretary. Mr. Hickok also misled federal ethics officers by telling them that he had divested all of the shares of several bank stocks when he had not done so, according to a statement by Jeffery A. Taylor, the U.S. attorney in Washington.

Mr. Taylor’s office announced the settlement on March 16.

Mr. Hickok said in an interview last week that he had not intended to deceive federal ethics officials and that the problem had resulted from a mistake.

After Mr. Hickok signed an agreement with ethics officers stating that he and his wife would sell his shares of bank stocks upon becoming deputy secretary, Mr. Hickok’s wife sold all of her interests in Bank of America and three other banks that issue federal student loans. He and his wife assumed his financial advisers had sold bank shares owned by Mr. Hickok as well, he said.

Stock Split

Although Mr. Hickok served as undersecretary of education, the department’s No. 3 position, starting in 2001, he was not required to sell his bank shares then because he had agreed to abstain from policy decisions regarding the federal student-loan program.

When President Bush nominated him to be deputy secretary, ethics officers insisted that he end his ownership of bank stocks.

“We agreed to divest everything, and we thought we had,” said Mr. Hickok, who is now a senior policy director at Dutko Worldwide, a Washington-based lobbying firm.

“This one just slipped through the cracks,” he added.

He said he discovered the mistake when his accountant gave him disclosure forms he needed to file in 2005. He said he alerted federal prosecutors to the problem and has been negotiating a settlement since then.

In a statement he signed as part of the settlement, however, Mr. Hickok acknowledged that he had received dividends, news of a stock split, and other information about his ownership of shares in Bank of America during the time he said he thought he had complied with ethics rules.

In the statement, the U.S. attorney’s office said Mr. Hickok would not face indictment for any conflict-of-interest violations pertaining to his ownership of Bank of America stock.

A version of this article appeared in the March 28, 2007 edition of Education Week as Hickok to Pay $50,000 in Bank-Stock Inquiry


This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Classroom Technology Webinar
Educator-Driven EdTech Design: Help Shape the Future of Classroom Technology
Join us for a collaborative workshop where you will get a live demo of GoGuardian Teacher, including seamless new integrations with Google Classroom, and participate in an interactive design exercise building a feature based on
Content provided by GoGuardian
School & District Management Live Online Discussion A Seat at the Table With Education Week: What Did We Learn About Schooling Models This Year?
After a year of living with the pandemic, what schooling models might we turn to as we look ahead to improve the student learning experience? Could year-round schooling be one of them? What about online
School & District Management Webinar What's Ahead for Hybrid Learning: Putting Best Practices in Motion
It’s safe to say hybrid learning—a mix of in-person and remote instruction that evolved quickly during the pandemic—is probably here to stay in K-12 education to some extent. That is the case even though increasing

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Miguel Cardona: Schools Must Work to Win Trust of Families of Color as They Reopen
As Secretary of Education Miguel Cardona announced new school reopening resources, he encouraged a focus on equity and student engagement.
4 min read
Education Secretary nominee Miguel Cardona testifies before the Senate Health, Education, Labor and Pensions committee during his confirmation hearing Feb. 3, 2021.
Now-U.S. Secretary of Education Miguel Cardona testifies before the Senate Health, Education, Labor and Pensions committee during his confirmation hearing in February.
Susan Walsh/AP
Federal CDC: Nearly 80 Percent of K-12, Child-Care Workers Have Had at Least One COVID-19 Shot
About four out of five teachers, school staffers, and child-care workers had first COVID-19 vaccine doses by the end of March, CDC says.
2 min read
John Battle High School teacher Jennifer Daniel receives her COVID-19 vaccine on Jan. 11, 2021. Teachers received their first vaccine during an all-day event at the Virginia Highlands Higher Education Center in Abingdon, Va.
John Battle High School teacher Jennifer Daniel receives her COVID-19 vaccine on Jan. 11at the Virginia Highlands Higher Education Center in Abingdon, Va.
David Crigger/Bristol Herald Courier via AP
Federal Ed. Dept. to Review Title IX Rules on Sexual Assault, Gender Equity, LGBTQ Rights
The review could reopen a Trump-era debate on sexual assault in schools, and it could spark legal discord over transgender student rights.
4 min read
Symbols of gender.
Federal Q&A EdWeek Q&A: Miguel Cardona Talks Summer Learning, Mental Health, and State Tests
In an interview after a school reopening summit, the education secretary also addressed teachers' union concerns about CDC guidance.
10 min read
Education Secretary Miguel Cardona speaks during a press briefing at the White House on March 17, 2021.
U.S. Secretary of Education Miguel Cardona speaks during a press briefing at the White House on March 17.
Andrew Harnik/AP