Update | ITT Students’ $1.5 Billion Bankruptcy Settlement Approved by Judge
On Wednesday, November 28, the judge in the ITT bankruptcy case gave final approval to the settlement between the student class and the estate of ITT. The settlement is a big victory for former ITT students who were defrauded by the school and provides important relief.
ITT Tech Students Score Victory in Bankruptcy Settlement | Washington Post
As creditors of ITT Educational Services fight over the remaining assets of the defunct for-profit college operator, one group has secured a significant victory in the bankruptcy proceedings: former students. On Wednesday, a federal judge gave final approval to a settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement, which was first announced in January, will also refund $3 million that students paid the for-profit chain.
These For-Profit College Students Hope for Debt Relief as a Debate About Their Loans Rages in Washington | MarketWatch
Seth Pontiff has been waiting for three years to hear whether the $80,000 in loans he took out attending ITT Technical Institute — a for-profit college that closed in 2016 amid allegations of false advertising — will be discharged by the government.
DeVos Proposes to Curtail Debt Relief for Defrauded Students | New York Times
Education Secretary Betsy DeVos proposed on Wednesday to curtail Obama administration loan forgiveness rules for students defrauded by for-profit colleges, requiring that student borrowers show they have fallen into hopeless financial straits or prove that their colleges knowingly deceived them.
SEC’s $300,000 ITT Settlement Leaves Trail of Questions | Indianapolis Business Journal
The Securities and Exchange Commission came at ITT Educational Services Inc.’s two top executives with guns blazing three years ago, declaring that CEO Kevin Modany and Chief Financial Officer Daniel Fitzpatrick “engineered a campaign of deception and half-truths.”
Students Cry for Debt Relief After For-Profit College Collapse, While Executives Admit No Wrongdoing | Market Watch
As a young high school graduate, Joseph Schettler had dreams of working for the FBI or becoming a forensic psychologist. He took steps to make those dreams a reality. Schettler became the first person in his family to go to college, enrolling in the criminal justice program at ITT Tech in 2006 with assurances from the school that he would surely get a job in his field.
ITT Execs Offered ‘Sweetheart Deal’ | Politico
That’s how lawyers representing defrauded ITT students are describing the settlement reached late last week between the Securities Exchange Commission and two former senior executives of ITT Educational Services Inc., the company behind a troubled for-profit college that shuttered in 2016.
In Another Injustice For ITT Students, Predatory ITT Executives Get July 4 Weekend Gift While Defrauded Students Left Holding The Bag | Press Release
Late on Friday, it was announced that the SEC had settled its case against former ITT executives Kevin Modany and Daniel Fitzpatrick for cheating the company’s shareholders and operating the company for their own personal financial benefit. The settlement, reached on Friday, July 6 just before the trial was set to start today, lets them walk away with a slap on the wrist.
Top ITT Executives Agree to Fines, Ban From Top Corporate Jobs in SEC Settlement | Indy Star
The top executives of the defunct Carmel company that operated ITT Technical Institute have settled fraud charges with the Securities and Exchange Commission. Former CEO Kevin Modany will pay $200,000 and former Chief Financial Officer Daniel Fitzpatrick will pay $100,000 to resolve allegations that they concealed ITT Educational Services’ worsening financial condition from investors in the years leading up to the company’s collapse.
Former executives of defunct for-profit college firm ITT settle fraud charges with SEC | Washington Post
Former top executives at ITT Educational Services, the parent company of defunct ITT Technical Institute, have settled fraud cases with the Securities and Exchange Commission, avoiding a trial slated to begin Monday. A judgment order entered Friday puts to rest civil fraud charges filed in 2015 against former ITT chief executive Kevin Modany and former chief financial officer Daniel Fitzpatrick for allegedly deceiving investors about high rates of late payments and defaults on student loans backed by the company.