What's going on with Indian students?

1.July 29, 2011
Federal Agents Raid Virginia Institution That Draws Many Students From India
Karen Kasmauski for The ChronicleThe University of Northern Virginia is located in a series of office buildings in the suburbs of Washington, D.C. Nearly all of its students are in the United States on visas.
By Tom Bartlett, Karin Fischer, and Josh Keller
The U.S. Department of Homeland Security raided the University of Northern Virginia on Thursday morning, hauling away computers and boxes of paperwork and notifying the suburban Washington institution that it may lose its ability to accept foreign students.
More: http://chronicle.com/article/Agents-Raid-Virginia/128433/?sid=at&utm_source=at&utm_medium=en

2. Sent: Wednesday, July 27, 2011 1:10:44 PM GMT -05:00 US/Canada Eastern
Subject: ISTAnetwork : International Student Advising Forum : Does playing US DV lottery constitutes intent to migrate? - New post on NAFSA Discussion Forums

Tope Bada just posted at ISTAnetwork : International Student Advising Forum : Does playing US DV lottery constitutes intent to migrate?.
I have counseled 2 graduate students for admission and they went for visa adjudication at the US consular post in Abuja recently. The interviewing consular officer "214(b)ed" the students because according to him, they have "played" the DV 2012 Lottery and hence shown an intent to migrate. The first student's F-1 visa was denied because the Consular Officer asked her if she has applied for an immigrant visa previously but she replied in the negative but stated that her cousin had submitted registration for the DV Lottery 2012 for her last year. The consular officer then left his desk and went inside to consult. He came back later to inform the student that she qualifies for the F-1 visa but he cannot issue it to her because she "played" visa lottery.
In the case of the second student, he was issued the F-1 visa and after he has left the premises of the post, he was re-called by the embassy security and subsequently denied the F-1 visa by the Consular Officer because according to the consular staff; "he has in his record that someone played visa lottery for the student sometimes ago".
I am aware that the DV 2012 results are still pending and usually if an applicant wins and does not follow up by sending the Immigrant Forms to KCC to proceed, there is no intent to migrate. In this case, the students supposedly have only played the lottery while the result is pending and neither of them ever filed an immigrant application. Even, if the result comes out that they have won, they might still decided not to proceed if its not convenient.
I will like to know if there is any legislation that supports this consular officer's decision that playing the US DV lottery is an intent to migrate and will subsist as an answer to the question on the DS 160 form that states if a visa applicant has ever filed an immigrant petition?
This is the first time I have heard of such reasons being used as an excuse for visa denial by a Consular Officer. Advise and suggestions required! Thank you.
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