Submission + - ITT Educational Services charged with fraud over student loan program (cbs4indy.com)
mpicpp writes: Things are tense in the world of for-profit colleges.
The latest to face problems is ITT Educational Services, which was charged with fraud Tuesday. The Securities & Exchange Commission said the company’s chief executive and chief financial officer misled investors and auditors with “outright misstatements” and “half-truths” about its student loan program.
ITT Educational Services allegedly created a fraudulent scheme to show that it was doing better financially than it really was. Students had been defaulting on their loans in droves, but CEO Kevin Modany and CFO Daniel Fitzpatrick hid the real cost from investors, the SEC said.
More than 51,000 students take online courses or attend the 135 ITT Technical Institute campuses located in 39 states. ITT also runs the Daniel Webster College in New Hampshire.
The charges comes on the heels of financial problems at Corinthian College, which was recently shuttered, affecting about 74,000 students.
The latest to face problems is ITT Educational Services, which was charged with fraud Tuesday. The Securities & Exchange Commission said the company’s chief executive and chief financial officer misled investors and auditors with “outright misstatements” and “half-truths” about its student loan program.
ITT Educational Services allegedly created a fraudulent scheme to show that it was doing better financially than it really was. Students had been defaulting on their loans in droves, but CEO Kevin Modany and CFO Daniel Fitzpatrick hid the real cost from investors, the SEC said.
More than 51,000 students take online courses or attend the 135 ITT Technical Institute campuses located in 39 states. ITT also runs the Daniel Webster College in New Hampshire.
The charges comes on the heels of financial problems at Corinthian College, which was recently shuttered, affecting about 74,000 students.
