On Jul. 6, SEC fined managers of ITT Educational for disclosure.
- SEC settlement vs. two former senior executives of ITT Educational Services Inc.
- Follows SEC May 2015 settled charged against company for fraud.
Alleged Violations
- Kevin Modany CEO and Daniel Fitzpatrick fined for concealing financial condition.
- Charges against two executives, were based on same conduct as their company.
- Firm had imminent problems re two student loan programs that ITT guaranteed.
- Fraudulently concealed poor performance, looming financial impact of programs.
- Modany and Fitzpatrick settled as control persons, for ITT’s fraud and violations.
Sanctions of Individuals
- Barred both from serving as officers and directors of public companies for 5 years
- Ordered Modany and Fitzpatrick to pay penalties of $200k and $100k respectively.
- Resolution successfully concludes case, which was scheduled for trial Jul. 9, 2018.
