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 reports 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 st! udent loan programs ITT set up in 2009.