Defunct For-Profit ITT’s Former Execs Settle Fraud Charge

Former top executives at ITT Educational Services, the parent company of defunct ITT Technical Institute, have settled fraud charges with the Securities and Exchange Commission, avoiding a trial that was slated to begin Monday.

A judgment order entered Friday puts to rest civil fraud charges filed in 2015 against former ITT Chief Executive Kevin Modany and former Chief Financial Officer Daniel Fitzpatrick. The charges accused them of deceiving investors about high rates of late payments and defaults on student loans backed by the company.

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