Thursday, May 14, 2015

SEC Files Charges Against ITT Educational Services

The SEC has filed charges against ITT Educational Services Inc., its chief executive officer, and its chief financial officer.   The SEC alleges that the national operator of for-profit colleges and the two executives fraudulently concealed from ITT’s investors the poor performance and looming financial impact of two student loan programs that ITT financially guaranteed.  ITT formed both of these student loan programs, known as the “PEAKS” and “CUSO” programs, to provide off-balance sheet loans for ITT’s students following the collapse of the private student loan market.  To induce others to finance these risky loans, ITT provided a guarantee that limited any risk of loss from the student loan pools.

For more information - SEC.gov | SEC Announces Fraud Charges Against ITT Educational Services

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