An Indiana federal judge has let the directors of collapsed, disgraced for-profit college ITT Tech off the hook, rejecting claims from the company’s bankruptcy trustee that the board’s failure to fire CEO Kevin Modany breached their fiduciary duties. But U.S. District Court Judge James Patrick Hanlon rejected Modany’s own effort to escape liability, ruling that
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Kevin Modany, the long-time CEO of the for-profit college chain ITT Tech, spent the months before the company’s collapse focused on increasing his financial take from the business and trying to preserve his reputation, rather than protecting ITT’s investors — let alone the interests of ITT students or of U.S. taxpayers, who have provided billions
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  The U.S. Securities and Exchange Commission has rejected a proposed settlement of the SEC’s lawsuit against two former executives of the collapsed for-profit college company ITT Educational Services. In a court filing on August 11, SEC lawyers told the Court that “the Commission will not approve the proposed settlements” with former ITT CEO Kevin
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With Donald Graham yielding to his son-in-law the CEO spot at his company, which owns for-profit Kaplan University, and with and the University of Phoenix this week putting itself up for sale, perhaps to private equity investors closely tied to President Obama (see below), where is the stability in the leadership of America’s large predatory for-profit colleges?
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