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The Journal Gazette

Monday, July 09, 2018 4:00 pm

Ex-ITT execs agree to settlements with SEC

Associated Press

INDIANAPOLIS -- The former CEO of the parent company of for-profit ITT Technical Institute has agreed to settle a lawsuit accusing the company's management of hiding from investors the rapidly eroding financial condition of the now-defunct firm.

The Indianapolis Business Journal reported that Kevin Modany will pay $200,000 and accept a five-year ban from serving as an executive of a public company to settle the Securities and Exchange Commission lawsuit against ITT Educational Services Inc. Former ITT Chief Financial Officer Daniel Fitzpatrick agreed to pay $100,000 and accept the same ban under a separate settlement.

Neither man admitted wrongdoing in their settlements, which came just before a trial scheduled Monday.

The SEC lawsuit filed in 2015 accuses the two executives of concealing the "extraordinary failure" of two student loan programs ITT set up in 2009.