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Kevin Modany
Kevin Modany, former CEO of ITT Educational Services, faces serious fraud allegations for concealing the poor performance of student loan programs, leading to significant financial losses for investors and students.
Quick summary on Kevin Modany
Fraudulent Concealment of Loan Performance: Modany, along with CFO Daniel Fitzpatrick, was charged by the Securities and Exchange Commission (SEC) in 2015 for allegedly hiding the poor performance and financial risks of two student loan programs, PEAKS and CUSO, which ITT had guaranteed.
Misrepresentation to Investors: Under Modany’s leadership, ITT is accused of misleading investors about the company’s financial exposure, resulting in significant stock price declines as the true extent of liabilities became known.
Legal Repercussions: The SEC’s lawsuit against Modany and Fitzpatrick highlights serious allegations of corporate fraud, leading to prolonged legal battles and potential financial penalties.
Bankruptcy Proceedings: Following these events, ITT Educational Services filed for bankruptcy, with a trustee filing a $250 million complaint against Modany and other former executives, aiming to recover funds for creditors, including defrauded investors and students.
Intel Reports
by: Amber Griffin
Hiding financial risks from investors? That’s straight-up fraud, no sugarcoating it.
by: Jenna Henderson
ITT Tech went under because of pure greed. They knew the risks, hid them, and let students take the fall. No way they should’ve been allowed to operate this long.Disgusting behavior.
by: Carter Franklin
Bankruptcy after all that fraud? Classic. They made money, left students in debt, and disappeared.
Cons
by: Danielle Perry
Hard to believe how they got away with this for so long. So many lives ruined, and yet they still walked free.