The Securities and Exchange Commission has reached settlements with two former senior executives of ITT Educational Services Inc., which the Commission says hid its true financial condition from investors. The resolution successfully concludes an SEC case against the national operator of for-profit colleges that was otherwise scheduled to begin trial on July 9.
Under the terms of the agreements, former CEO Kevin Modany and former CFO Daniel Fitzpatrick are barred from holding senior positions at public companies and ordered to pay penalties in the settlements filed in federal court in Indiana.The SEC alleged that they fraudulently concealed the poor performance and looming financial impact of two student loan programs that ITT financially guaranteed. The firm previously settled fraud charges based on the same alleged conduct.
