ITT Educational Services, Inc. ESI shares were down more than 40 percent on Tuesday after the U.S. Securities and Exchange Commission revealed it will charge the company's executives with fraud.
CEO Kevin Modany and CFO Daniel Fitzpatrick are included in the SEC release, which said "the two executives fraudulently concealed from ITT's investors the poor performance and looming financial impact of two student loan programs that ITT financially guaranteed."
Last fall, the company reported it was under the watchful eyes of the SEC and Department of Education.
Astoundingly, ITT shares have fallen 90 percent in the past year. In May 2014, the stock traded in the $25 range.
Five years ago, shares were above $100, as a recent tweet points out.
ITT shares have lost 98% of value over the last 5 years.
Stock is down $23/share over the last 52 weeks. $ESI pic.twitter.com/4WBUBJBSQC
— Benzinga.com (@Benzinga) May 12, 2015
Here's what else Twitter is saying about the investigation:
$ESI collapsing down 30% right now.
http://t.co/TTsz1qAizT pic.twitter.com/g2jDeAauS6
— Ophir Gottlieb (@OphirGottlieb) May 12, 2015
.@herbgreenberg did a superlative job calling out $ESI years ago. Guess what? He's also extremely critical of $HLF. https://t.co/oIgWDNhDCC
— Quoth the Raven (@QuoththeRavenSA) May 12, 2015
A reminder why we need short sellers, Bill Ackman: SEC takes down $ESI execs for fraud yrs after the short campaign v for-profit education
— michelle celarier (@mcelarier) May 12, 2015
Watch $APOL with all this $ESI stuff
— Open Outcrier (@OpenOutcrier) May 12, 2015
been sayin for years the for profit education sector a scam on taxpayers - one by one they biting the dust $ESI
— buysellshort.net (@buysellshort) May 12, 2015
As of this writing, ITT shares have slightly rebounded to the $2.60 range, but are still down 36 percent on the day.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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