Hynes Keller & Hernandez, LLC Announces Investigation of ITT Educational Services Inc.

NEW YORK, May 14, 2015 /PRNewswire/ -- Hynes Keller & Hernandez, LLC is investigating potential claims against the Board of Directors of ITT Educational Services Inc. (NYSE: ESI) ("ITT") concerning possible breaches of fiduciary duty arising from the announcement by the U.S. Securities and Exchange Commission ("SEC") on May 12, 2015 that the agency is pursuing fraud charges against ITT, its Chief Executive Officer Kevin Modany, and its Chief Financial Officer Daniel Fitzpatrick. 

The SEC alleges that ITT, a national operator of for-profit colleges, and 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.  ITT formed both of these student loan programs, known as the "PEAKS" and "CUSO" programs, to provide off balance sheet loans for ITT's students following the collapse of the private student loan market.  To induce others to finance these risky loans, ITT provided a guarantee that limited any risk of loss from the student loan pools.

According to the SEC's complaint, ITT's senior-most executives made numerous material misstatements and omissions in its disclosures to cover up the subpar performance of student loans programs that ITT created and guaranteed.

Click here for more information about our investigation of ITT: http://hkh-lawfirm.com/investigations-cases/itt-educational-services-inc-itt/

Hynes Keller & Hernandez, LLC is a national law firm that represents institutional and individual investors.  The firm is focused on providing exemplary legal services in the area of shareholder litigation. The firm has an experienced litigation team which has achieved significant victories on behalf of the firm's clients.  You can visit our website at www.hkh-lawfirm.com for more information.  Attorney advertising. Prior results do not guarantee similar outcomes.

If you hold shares in ITT and would like to obtain additional information about your legal rights and protect your investment, please visit our website or contact the attorneys below.  There is no cost or obligation to you. 

SOURCE Hynes Keller & Hernandez, LLC

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