ITT Educational Faces SEC Charges Of Student Loan Cover-up

[Purveyor]

By The Associated Press
May. 12, 2015 1:24 PM EDT

ITT Educational Services is facing charges that it duped investors by concealing huge losses on loans made to students attending the company's for-profit colleges.

A complaint filed Tuesday by the Securities and Exchange Commission alleges ITT engaged in scheme designed to cover up mounting problems in two different loan programs that helped finance the tuition of its students.

ITT guaranteed the loans, threatening to hobble the Carmel, Indiana, company as students missed payments.

The SEC case in Indiana federal court portrays ITT CEO Kevin Modany and Daniel Fitzpatrick, the company's chief financial officer, as the masterminds of the fraud.

ITT says it "vehemently" disagrees with the SEC's allegations.

MORE...

http://bigstory.ap.org/article/013b45659470456aad3910493aec93da/itt-educational-faces-sec-charges-student-loan-cover

[Wellstone ruled]

1. Always heard this so called training school was

sketchy at best.

[Hestia]

2. My DH left the Marine Corp in 1997 & went to ITT through the GI Bill. It was a good school

then, he was hired by SW Bell/AT&T and has done wonderful at that corp (as far as it being a corp). But that *was* during the Clinton years. No telling what has happened to it now.