ITT Technical Institute: Difference between revisions
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==Controversy== |
==Controversy== |
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ITT Technical Institute has been involved in several controversies over its business and academic practices. |
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On February 25, 2004, federal agents, pursuant to subpoenas issued by a Houston U.S. District Court raided the company's headquarters and 10 of its campuses seeking data on student placement, retention, attendance and grades, recruitment and admissions, graduate salaries, and transfers of credits to other schools. No charges were filed, and "no conclusions should be drawn from today's activity".<ref>[http://www.cnn.com/2004/TECH/biztech/02/26/itttech.subpoenas.ap/index.html Feds serve warrants at ITT Tech campuses, CNN]</ref> The investigation negatively affected the company's stock and triggered several class action lawsuits by investors.<ref name="fedcert">[http://certcities.com/editorial/news/story.asp?EditorialsID=571 ''Federal Probe Targets ITT Tech'', CertCities March 2, 2004]</ref> The lawsuits alleged that ITT misrepresented its financial health and failed to disclose numerous deficiencies in order to artificially inflate its reported operational and financial performance."<ref>[http://www.crn.com/it-channel/18831505 ''ITT's CEO Expects Lengthy Federal Investigation, Stock Slips'', Channel Web Network, Feb. 26, 2004, Mark Jewell]</ref> In the largest of the investor law suits, former employees complained that ITT set unrealistic goals for enrollment, retention, and placement and exerted enormous pressure to enroll students. The complaint quotes a former admissions representative, characterizing the job as similar to selling “used cars.”<ref>City of Austin Police Retirement System v. ITT Educational Services, Civ. Action # 1:04-cv-00380 (S.D. Ind. Complaint filed February 26, 2004).</ref> Overall, the former employees bringing the suit describe a culture where enrollment figures were manipulated, many “enrollees” never attended school, attendance and grades were inflated, and placement rates were misrepresented.<ref name="law">[http://www.studentloanborrowerassistance.org/uploads/File/ProprietarySchoolsReport.pdf ''Making The Numbers Count: Why Proprietary School Performance Data Doesn’t Add Up and What Can Be Done About It'' National Consumer Law Center, June 2005, Deanne Loonin and Julia Devanthéry]</ref> |
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The company's representations about its financial status were questioned in class-action lawsuits filed by investors in 2004. That action followed raids authorized by subpoenas from a U. S. District Court in Houston, Texas aimed at gathering documents from ITT's corporate headquarters and 10 campuses. <ref>[http://www.cnn.com/2004/TECH/biztech/02/26/itttech.subpoenas.ap/index.html Feds serve warrants at ITT Tech campuses, CNN]</ref><ref name="fedcert">[http://certcities.com/editorial/news/story.asp?EditorialsID=571 ''Federal Probe Targets ITT Tech'', CertCities March 2, 2004]</ref> |
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In October 2005, ITT agreed to pay $725,000 to settle a lawsuit with California in which employees alleged that it inflated students’ grade point averages so they qualified for more financial aid from the State of California. ITT admitted that “erroneous student grade point average calculations” resulted in 49 students receiving more money from the state Cal Grant program than they were entitled to. The settlement covered the state's portion of the 2002 federal claims lawsuit.<ref>[http://insidehighered.com/news/2005/10/18/itt ''ITT, Calif. Settle False Claims Lawsuit'', Inside Higher Education, Oct. 18, 2005, Doug Lederman]</ref> |
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The state of Indiana filed a false claim suit against ITT in April 2004. The case alleged that ITT knowingly used false records and statements (relating to, among other things, student recruitment, admission, enrollment, attendance, grading, graduate placement, and course materials) in an effort to obtain federal grants and financial-aid payments. Charges were dismissed. <ref>[http://www.dailybruin.ucla.edu/archives/id/34042/ ''ITT Tech accused of misreporting grades'', Daily Bruin, October 19, 2005, Lauren Gabbaian]</ref><ref name=law/><ref>U.S. ex rel. Robert Olson v. ITT Educational Services, Inc (S.D. Ind. Complaint filed April 8, 2004) and reported in ITT’s 2004 Annual Report. ITT reported that the U.S. Department of Justice had declined to intervene in the litigation.</ref> |
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In November 1999, two admissions/recruitment employees at an ITT Technical Institute in California, filed a law suit alleging that ITT Educational Services Inc. used an "incentive salary structure" that flouted the federal ban on providing bonuses, commissions or other payments to recruiters tied to their success enrolling students. In 2003, a federal judge in Houston threw out the suit on technical grounds, without weighing evidence.<ref>[http://goliath.ecnext.com/coms2/gi_0199-176505/Suit-may-have-led-to.html ''Suit may have led to probe: criminal inquiry puts ITT Educational in peril.'', Goliath, March 8, 2004, Greg Andrews]</ref> |
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A lawsuit was filed on June 8, 1995 in San Diego, California by seven graduates of the San Diego ITT Technical Institute. The plaintiffs claimed that the defendants (1) made misrepresentations and engaged in deceptive acts in the recruitment of the plaintiffs for, and/or in the promotion of, the program, (2) provided inadequate instruction to the plaintiffs, (3) used inadequate facilities and equipment in the program and inappropriate forms of contracts with the plaintiffs, (4) failed to provide the plaintiffs with all required information and disclosures and (5) misrepresented the plaintiffs' prospects for employment upon graduation, the employment of the program's graduates and the plaintiffs' ability to transfer program credits. In October 1996, the jury in this action rendered a verdict against ITT Educational Services Inc and awarded the plaintiffs general damages of approximately $200,000 and exemplary damages of $6.6 million. ($2.6 million and $4 million were assessed against ITT ESI and ITT Tech, respectively.) The judge also awarded the plaintiffs attorney's fees and costs, in the amount of approximately $900,000 plus interest. <ref name="annual99">[http://sec.edgar-online.com/1999/02/19/17/0001047469-99-006685/Section4.asp ''ESI Annual Report'' Filed: 2/19/1999]</ref> <ref name="10q">[http://www.secinfo.com/dsvRm.71N9.htm''Itt Educational Services Inc · 10-Q · For 3/31/98'']</ref><ref name=424b4/>In November 1998, based on the joint application and stipulation filed by ITT and the plaintiffs, the appellate court reversed the judgment against ITT and remanded the case back to the trial court, which vacated and set aside the judgment and dismissed the case with prejudice in December 1998.<ref name=annual99/> |
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In January 1997, six legal actions were filed against ITT Educational Services Inc in San Diego, California by a total of 21 former students of the San Diego ITT Technical Institute. The claims alleged related primarily to the Company's marketing and recruitment practices and included misrepresentation and violations of certain state statutes.<ref name=10q/><ref name=424b4/> |
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In June 1997, a legal action was filed against ITT Educational Services Inc in Orlando, Florida by three former students of the Maitland ITT Technical Institute. In April 1998, the legal action in Florida was dismissed without prejudice by the plaintiffs.<ref name=10q/> |
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April 1998, a legal action was filed against ITT Educational Services Inc in San Diego, California by nine former students who attended the hospitality program at either the Maitland or San Diego ITT Technical institute. The claims alleged related primarily to the Company's marketing and recruitment practices and included misrepresentation and violations of certain state statutes.<ref name=10q/> |
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August 1998, 15 former students who attended the hospitality program at campuses in San Diego or Maitland threatened to commence legal proceedings against ITT. The claimants alleged, among other |
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| ⚫ | things, statutory violations, misrepresentation, fraud and concealment by ITT arising out of their recruitment to attend, and their education at, ITT campuses. In September 1998, ITT settled all of the claims of the 15 claimants. <ref name="424b4"> [http://www.secinfo.com/dsvRs.6b4.htm#4p7r ''Itt Educational Services Inc · 424B4 · On 1/27/99'']</ref> |
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==Campus locations== |
==Campus locations== |
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Revision as of 06:45, 22 November 2008
 | A major contributor to this article appears to have a close connection with its subject. |
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| Company type | Public (NYSE: ESI) |
|---|---|
| Founded | 1946 |
| Headquarters | Carmel, IN, USA |
| Website | www.ittesi.com |
ITT Technical Institute (often shortened to ITT Tech) is a private, for-profit, technical institute with 100 campuses in 35 states of the United States.[1] It was founded in 1946 as Educational Services, Inc. and has been headquartered in Carmel, Indiana, since 1969. ITT Tech is owned and operated by ITT Educational Services Inc. (NYSE: ESI), a publicly traded company.
Accreditation
ITT Tech is nationally accreditedby the Accrediting Council for Independent Colleges and Schools[2]; it does not have regional accreditation, though individual campuses may[3].
Courses of study
ITT Tech offers programs specialized in information technology, electronics, drafting and design, criminal justice, health sciences, and business administration.
Students of ITT Tech may pursue associate's, bachelor's (all but health), or master's (business-only) degrees. Graduates might be specialized in architectural design, visual communications, programming, engineering and information technology.
ITT, the business
From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of ITT Corporation (as "ITT/ESI"). By 1999, ITT Corp. (which had merged with Starwood the year before) divested itself completely of ITT Tech's shares but the schools still use the "ITT" name under license.[4]
Controversy
On February 25, 2004, federal agents, pursuant to subpoenas issued by a Houston U.S. District Court raided the company's headquarters and 10 of its campuses seeking data on student placement, retention, attendance and grades, recruitment and admissions, graduate salaries, and transfers of credits to other schools. No charges were filed, and "no conclusions should be drawn from today's activity".[5] The investigation negatively affected the company's stock and triggered several class action lawsuits by investors.[6] The lawsuits alleged that ITT misrepresented its financial health and failed to disclose numerous deficiencies in order to artificially inflate its reported operational and financial performance."[7] In the largest of the investor law suits, former employees complained that ITT set unrealistic goals for enrollment, retention, and placement and exerted enormous pressure to enroll students. The complaint quotes a former admissions representative, characterizing the job as similar to selling “used cars.”[8] Overall, the former employees bringing the suit describe a culture where enrollment figures were manipulated, many “enrollees” never attended school, attendance and grades were inflated, and placement rates were misrepresented.[9]
In October 2005, ITT agreed to pay $725,000 to settle a lawsuit with California in which employees alleged that it inflated students’ grade point averages so they qualified for more financial aid from the State of California. ITT admitted that “erroneous student grade point average calculations” resulted in 49 students receiving more money from the state Cal Grant program than they were entitled to. The settlement covered the state's portion of the 2002 federal claims lawsuit.[10]
The state of Indiana filed a false claim suit against ITT in April 2004. The case alleged that ITT knowingly used false records and statements (relating to, among other things, student recruitment, admission, enrollment, attendance, grading, graduate placement, and course materials) in an effort to obtain federal grants and financial-aid payments. Charges were dismissed. [11][9][12]
In November 1999, two admissions/recruitment employees at an ITT Technical Institute in California, filed a law suit alleging that ITT Educational Services Inc. used an "incentive salary structure" that flouted the federal ban on providing bonuses, commissions or other payments to recruiters tied to their success enrolling students. In 2003, a federal judge in Houston threw out the suit on technical grounds, without weighing evidence.[13]
A lawsuit was filed on June 8, 1995 in San Diego, California by seven graduates of the San Diego ITT Technical Institute. The plaintiffs claimed that the defendants (1) made misrepresentations and engaged in deceptive acts in the recruitment of the plaintiffs for, and/or in the promotion of, the program, (2) provided inadequate instruction to the plaintiffs, (3) used inadequate facilities and equipment in the program and inappropriate forms of contracts with the plaintiffs, (4) failed to provide the plaintiffs with all required information and disclosures and (5) misrepresented the plaintiffs' prospects for employment upon graduation, the employment of the program's graduates and the plaintiffs' ability to transfer program credits. In October 1996, the jury in this action rendered a verdict against ITT Educational Services Inc and awarded the plaintiffs general damages of approximately $200,000 and exemplary damages of $6.6 million. ($2.6 million and $4 million were assessed against ITT ESI and ITT Tech, respectively.) The judge also awarded the plaintiffs attorney's fees and costs, in the amount of approximately $900,000 plus interest. [14] [15][16]In November 1998, based on the joint application and stipulation filed by ITT and the plaintiffs, the appellate court reversed the judgment against ITT and remanded the case back to the trial court, which vacated and set aside the judgment and dismissed the case with prejudice in December 1998.[14]
In January 1997, six legal actions were filed against ITT Educational Services Inc in San Diego, California by a total of 21 former students of the San Diego ITT Technical Institute. The claims alleged related primarily to the Company's marketing and recruitment practices and included misrepresentation and violations of certain state statutes.[15][16]
In June 1997, a legal action was filed against ITT Educational Services Inc in Orlando, Florida by three former students of the Maitland ITT Technical Institute. In April 1998, the legal action in Florida was dismissed without prejudice by the plaintiffs.[15]
April 1998, a legal action was filed against ITT Educational Services Inc in San Diego, California by nine former students who attended the hospitality program at either the Maitland or San Diego ITT Technical institute. The claims alleged related primarily to the Company's marketing and recruitment practices and included misrepresentation and violations of certain state statutes.[15]
August 1998, 15 former students who attended the hospitality program at campuses in San Diego or Maitland threatened to commence legal proceedings against ITT. The claimants alleged, among other things, statutory violations, misrepresentation, fraud and concealment by ITT arising out of their recruitment to attend, and their education at, ITT campuses. In September 1998, ITT settled all of the claims of the 15 claimants. [16]
Campus locations
Alabama
Arkansas
Arizona
California
- Anaheim (the school was previously located in Buena Park, a neighboring city of Anaheim)
- Clovis
- Culver City
- Lathrop (Modesto-Stockton)
- Oxnard
- Rancho Cordova
- San Bernardino
- San Diego
- San Dimas
- Sylmar
- Torrance
- Vista (Learning Site)
- West Covina (Learning Site)
Colorado
Florida
- Fort Lauderdale
- Jacksonville
- Lake Mary (Orlando) (previously known as the Maitland campus)
- Miami
- Pinellas Park
- Tampa
Georgia
Idaho
Illinois
Indiana
- Fort Wayne
- Indianapolis
- Greenwood (Learning Site)
- Newburgh (Evansville)
Kansas
Kentucky
Louisiana
Massachusetts
Maryland
Michigan
- Canton (SW Detroit)
- Dearborn (Learning Site)
- Swartz Creek
- Grand Rapids
- Troy (NE Detroit)
- Clinton Township (Learning Site)
Minnesota
- Eden Prairie (Minneapolis)
- Woodbury (Learning Site)
Missouri
- Arnold (SE St. Louis)
- Earth City (NW St. Louis)
- Kansas City
North Carolina
Nebraska
New Mexico
Nevada
New York
Ohio
- Dayton
- Hilliard (Columbus)
- Maumee (Toledo)
- Norwood (Cincinnati)
- Strongsville (W. Cleveland)
- Warrensville Heights (E. Cleveland)
- Youngstown
Oklahoma
Oregon
Pennsylvania
- Bensalem (NE of Philadelphia)
- Dunmore (Wilkes-Barre/Scranton)
- King of Prussia (NW of Philadelphia)
- Mechanicsburg (Harrisburg)
- Monroeville (Eastern Pittsburgh)
- Pittsburgh (Western Pittsburgh)
South Carolina
Tennessee
Texas
- Arlington (Fort Worth)
- Austin
- Houston North (Blue Ash Drive)
- Houston South (Webster)
- Houston West (South Gessner)
- Richardson (Dallas)
- San Antonio
Utah
Virginia
- Chantilly (N VA/West of DC)
- Norfolk
- Richmond
- Springfield (N VA/South of DC)
Washington
Wisconsin
References
- ^ ITT Technical Institute Opens 100th Location - Newsroom - Inside Indiana Business with Gerry Dick
- ^ "ACICS Accredited Institutions" (PDF). Accrediting Council of Independent Colleges and Schools. 2008-08-05. Retrieved 2008-08-26.
- ^ "ITT Educational Services, Inc. Announces the Opening of the First ITT Technical Institute in Maryland". PRNewswire. 2005-04-18. Retrieved 2008-11-21.
- ^ ITT Tech website
- ^ Feds serve warrants at ITT Tech campuses, CNN
- ^ Federal Probe Targets ITT Tech, CertCities March 2, 2004
- ^ ITT's CEO Expects Lengthy Federal Investigation, Stock Slips, Channel Web Network, Feb. 26, 2004, Mark Jewell
- ^ City of Austin Police Retirement System v. ITT Educational Services, Civ. Action # 1:04-cv-00380 (S.D. Ind. Complaint filed February 26, 2004).
- ^ a b Making The Numbers Count: Why Proprietary School Performance Data Doesn’t Add Up and What Can Be Done About It National Consumer Law Center, June 2005, Deanne Loonin and Julia Devanthéry
- ^ ITT, Calif. Settle False Claims Lawsuit, Inside Higher Education, Oct. 18, 2005, Doug Lederman
- ^ ITT Tech accused of misreporting grades, Daily Bruin, October 19, 2005, Lauren Gabbaian
- ^ U.S. ex rel. Robert Olson v. ITT Educational Services, Inc (S.D. Ind. Complaint filed April 8, 2004) and reported in ITT’s 2004 Annual Report. ITT reported that the U.S. Department of Justice had declined to intervene in the litigation.
- ^ Suit may have led to probe: criminal inquiry puts ITT Educational in peril., Goliath, March 8, 2004, Greg Andrews
- ^ a b ESI Annual Report Filed: 2/19/1999
- ^ a b c d Itt Educational Services Inc · 10-Q · For 3/31/98
- ^ a b c Itt Educational Services Inc · 424B4 · On 1/27/99
External links
- ITT Tech website
- ITT Educational Services Inc. website
- Accrediting Council for Independent Colleges and Schools website
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| Private institutions |
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| Footnotes | The ‡ symbol denotes institutional branches whose main campuses are located outside the Indianapolis metropolitan area. | |