A federal investigation involving stock trades has put Grand Canyon Education’s chief financial officer on leave, adding scrutiny to the Phoenix-based education company even though the company says it is not the focus of the probe.
Grand Canyon Education disclosed the development in a regulatory filing, saying CFO Daniel Bachus was placed on paid administrative leave Aug. 21. The company said the decision was connected to an investigation involving stock transactions by a third party who is not employed by the company.
The company also stressed that the situation is not related to its financial statements or its accounting policies and practices. Grand Canyon Education said it is cooperating with investigators, has brought in outside legal counsel and is conducting an internal review.
For investors, the distinction is important: the filing does not accuse Grand Canyon Education or Bachus of wrongdoing. But putting a chief financial officer on leave while a government investigation proceeds signals that the company is taking the matter seriously.
The investigation leaves key questions unanswered, including who made the trades and what prompted the government’s scrutiny. Until those details emerge, the company faces the challenge of maintaining confidence while the review continues.
