I'll try to unpack the relationships between the people listed in this story later, but a scandal may be brewing in the Education Department.
Whenever a government creates a program that mandates the purchase of an item, favors can be diverted to selected individuals who create that item. As long as the other party is not in a position to investigate--not in control of Congress--these things can stay hidden. Such is not the case, and is a further reminder of why elections, like 2006's, are so consequential.
By the way, note the role of the Justice Department in investigating this. Does independence matter?