"Are regulatory safeguards in place to ensure that there would be no wrongdoing, no breaches of contract?"

That is the question I posed on page 221 of Fubarnomics regarding the acquisition or failure of for-profit colleges. Unfortunately, nobody paid any heed to that book, or its chapter on higher education called "3rd Rock from the Sun." Now students, profs, and other stakeholders are paying the price. For details, see "Closures of For-Profit Campuses Point to Gaps in Oversight" in the Chronicle of Higher Education, A3, August 2, 2013.