- Two former officers of ITT Educational Services (OTC:ESINQ) settled charges that they hid the company's true financial condition from investors, the U.S. Securities and Exchange Commission says.
- Former CEO Kevin Modany and former CFO Daniel Fitzpatrick are barred from holding senior positions at public companies for five years and were ordered to pay penalties under the settlements.
- Modany will pay a $200,000 penalty and Fitzpatrick will pay a $100,000 penalty.
- The SEC alleges the two former executives concealed the company's poor performance and the looming financial impact of two student loan programs that ITT financially guaranteed.
- Both men also agreed to be suspended from appearing and practicing before the SEC as accountants. Both will be allowed to apply for reinstatement after five years.
- Previously: ITT Education Services files for bankruptcy (Sept. 19, 2016)
- Now read: Consumer - Top Gainers / Losers as of 12:00 PM (07/06/2018)
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