Federal Probe Targets ITT Tech
3/2/2004 -- Classes are back to normal at ITT Technical Institute campuses across the country after federal agents raided the company's headquarters and 10 of its campuses last week in response to grand jury subpoenas and search warrants seeking various enrollment data.
Last Wednesday, agents searched ITT's Indianapolis, Indiana headquarters and 10 schools, including campuses in California, Nevada, Texas, Florida, Oregon and Louisiana. The grand jury subpoenas that triggered the searches were issued by a U.S. District Court in Houston, and sought data on student placement, retention, attendance and grades, along with recruitment and admissions materials, graduate salaries, and transfers of credits to other schools.
Classes were cancelled for the day at the targeted campuses, and students, faculty and staff were questioned. In a statement, a U.S. attorney in Houston did not give a reason for the raids. No charges have been brought against the company.
ITT spokeswoman Nancy Brown said today that the probe won't affect current ITT students, and will have no effect on anyone holding a degree from any ITT Tech school. "All the colleges are open and functioning perfectly normally," she added.
At an investor conference call this morning, ITT's chairman and CEO, Rene R. Champagne said he believes the company has had strong internal controls and that the investigation "will show that we're in compliance." Analysts who focus on the education market said the probe might be related to Title IV, a federal regulation that requires education companies to report certain student data related to federal low-income grants to states. According to company regulatory filings, about 68 percent of ITT's 2003 revenue came from federal education aid programs.
The federal raids immediately affected the company's stock, which fell from last week's high in the mid-50s to a low of $34.50 last Thursday. ITT Educational Services Inc. trades on the New York Stock Exchange under the symbol "ESI." News of the probe also affected the entire for-profit education sector, whose shares tend to fluctuate as a group. ITT was trading around $35 a share by mid-week this week, and the remaining stocks in the sector had largely returned to their pre-probe numbers. "In light of the pending federal grand jury investigation of the company and resulting shareholder class action lawsuits," Champagne said during Wednesday's conference call with shareholders, "the company is not able to confirm the internal goals and other projections for the Company's 2004 fiscal year that were previously disclosed by the company."
The dramatic drop in stock prices triggered several class action lawsuits by investors late last week - a common practice when a stock price drops substantially. The lawsuits claim the company artificially maintained or inflated its stock price by issuing false facts or omitting other pertinent ones.
ITT, with some 75 locations in 30 states, is the largest operator in the U.S. of post-secondary school technical education. It offers technology-based associate, bachelor and masters degrees in a variety of subjects, including computer programming, Web development, and engineering, to over 37,000 students. It also offers online education. According to the U.S. Department of Education, ITT granted nearly 15 percent of the total number of associate and bachelor degrees awarded in the U.S. in electronics and electronics-related programs in the 2000-2001 school year, the largest percentage of any single institution.  -Linda Briggs
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There are 166  user Comments for “Federal Probe Targets ITT Tech”
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| 3/19/04: rob from ohio says: |
i just started itt-tech, i am very concerned after reading all these comments!!!! but to all you, people who think that you are better or smarter, just because you attend or attended traditional 4 year college. you are wrong, people with strong technical skills and life experience are more desirable than a person with no experience and a degree in poetry! poetry doesn't make for a good machinist or brick layer!!!!! |
| 3/20/04: Anonymous says: |
This is to the person who called everyone cry babies, shut up! $30,000 is a lot of money, and they talk about quality education and hands on experience that truly isn't there. You obviously are not a student or have not been in the last 3 years. We just want what we paid for. For you to say nobody has put effort into their education based on their comments above shows only a lack of intelligence on your part. You obviously have some growing up to do, because an adult would open there eyes and look at the bigger picture here before insulting and name calling others. So shut up! |
| 3/21/04: Anonymous from Houston, Texas says: |
I graduated from ITT 1 year ago. 1 1/2 years before that, I realized it was the biggest mistake of my life. Unfortunately I was already bound with the financial trap, so I made the best of it and finished. While I was there, I had only 3 professors who new what they were doing. One was a professor at a major university (excellent professor), another was a former programmer for Dreamcast, and another had a PHD (just hard to understand talking wise). I had very few classes with the professors. Mostly I had the people who considered that teaching was haing you copy out of the book. When I started looking for a job (no easy task in Houston), I talked to several agencies. They all told me the same thing, "To present me to their clients, they must take ITT off my resume!". They confirmed what I had thought, my degree isn't worth the piece of paper it was printed on. I read that the probe will not affect the people that already have a degree, THAT IS BULLSHIT! It will make any degree given by ITT, publicly worthless (as if it is not already). Specifics of what I experienced: Students that should not have been their (absents & low IQs) were not kicked out & usually those of us who were doing good in the course were asked to sit beside them and help them out. I even assisted in teaching a lab. The professors were actually made to call students who dropped out and try to get them to come back. (They were given students that they had caused to drop out). The career services department is so far behind the market, that I think these people could not hack it in a real placement agency. When I tried to change the resume they had on file to a better format (more likely to get me call backs), I was told NO! They said that they must have a chronological resume that is 1 page long. A couple of students suffered from false employment because the career services department did not check upon on the potential employer. And yes, they did report wrong placement numbers. I am proof of that, but it is also partly my fault. I did meet one client through them, it was supposed to be a one time computer installation job. (Incidentally, I have a degree in SAP). After I graduated I began receiving calls on a quickly basis wanting to know if I had found a job. I told them no and that I was not looking because I can not change jobs right now (Family comes first). This did not make them happy. So I went and filled out there form using the 1 client I had met through them. I put just what I had made from him on there. A few weeks ago I received a letter survey from the people doing the probe, they wanted to verify my job placement information. ITT had reported my making 43,000 a year. I barely clear 20 and I do not work in the IT field. I haven't returned the survey yet, but I am going to. I always try to talk people out of going to ITT when I can. There is no since in them making the same mistake as everyone else. |
| 3/22/04: warren from tennessee says: |
I have been reading the postings concerning the ITT probe and now feel compelled to address the story itself and some of the comments made. I have to start by saying that I have never attended or worked for ITT. I have been an instructor at two similar colleges that offer degrees in IT. I have heard almost every comment and horror story posted here before. I understand the frustration and anger that many of you feel. The degrees and certificates from these institutions are often only good enough for entry level positions and I have seen very few students enter the workforce into the positions that carry the salary that many have been promised. This results from a combination of factors including the individual talents of each student, but I have noticed that few students take the advice that I gave at the beginning and throughout every class I taught. Start working in the field before you every graduate and take the certifications as soon as possible. I know that some people can't afford to leave their current jobs while in school yet some fail to put forth the effort to get the experience that they need before they graduate. It doesn't make since to some, but working in the field (no matter what you are doing) will make a difference when you leave. That is why many students from traditional universities fight for internships. The experience, knowledge, and contacts you will make help you find a first job. With any school, the student has just as much a responsibility to their education as the school itself. My advice is to visit the schools you are interested in, sit in a class or two (many schools will let you do this), research the school (if you need help a librarian in a public library can help you find information that isn't always available online), and take your time. Please do not rush into anything. Try taking one class in that field at a community college or university. Spending two hundred and fifty dollars on one class will be a lot better than finding yourself stuck in the financial situation that occurs at ITT, DeVry, and so on. It is not a bad thing to have to take an English, Communications, or Psychology class at a traditional school either. I have seen many students graduate without some of the most basic communication skills. The ability to communicate effectively is just as important in IT as in any other field. Take your time, research not only the school but the types of jobs that you will be looking to obtain. READ EVERYTHING. Keep yourself informed on the latest trends and news in your field while you are in school. Don't just read the assigned chapters from class (I say this with a hint of sarcasm because many of my students never read but a small portion or the material assigned to them). The options in post-secondary education are wide and growing. Ask business owners and professionals what types of factors they look for in a prospective employee and then choose a path that fits you and your abilities. |
| 3/22/04: Annonymous from Tampa says: |
I graduated from the CNS program at ITT Technical Institute in December of 2003. I hear the same kind of hype from students in the school about all the financial hastle they have had with ITT and soforth. My experience, I basically grew up in a company where there was no chance of even walking thru the IT department without some kind of degree. When I enrolled into ITT, my instructors, sought out to help each and every one of us to better explain the curriculum and went the extra mile for all of us. The same people that would complain in school about how ITT was horrible and how ITT did nothing for them were the same people that had no computer background whatsoever, did not try hard enough, and were simply there probably because there jobs were paying for the school which they obviously didnt give a damn about. The teachers probably dont know everything in the world, I know because in high school I had a listening problem which made it hard for me to hold good grades. At ITT, I took school more seriously and worked hard with the teachers as well as all the literature and books and websites and all the hardware they trained me on. You cannot go to a community college and expect to be trained how to use a piece of hardware the way that ITT does. Being a project manager in my final quarter of the CNS program, I realized that I had made the best of my degree only because of how much I put into it. I believe you get what you pay for. If you want to have a job making 45 plus, you have to invest a little. As far as how far my degree got me, I landed a job quickly and make double what I originally made before I got into ITT Tech. I now am in the Bachelors program for ISS (Information Security). You guys can sit here and muck around about how bad the school is, but its all based on different experiences. There is people who havent even begun to work for the organization, and now they are going to waste important class time trying to find things wrong with the organization. You cant expect ITT to just give you a job, you have to work at it. By the way, certifications are another objective to getting a high paying job. As far as the money goes, sit down and break down the value of how much each book costs plus the equipment they supply, plus all the latest hardware they use in the labs, along with salary, and then ask yourself what your really paying for. |
| 3/23/04: derek from springfield campus says: |
I feel all you guys pain i am a second quarter student at whyTT tech i think there should some investigating going on on all of the schools. I have recently transfered to the springfield from the norfolk in which was the biggest mistake of my life besides signing on the dotted line this campus reminds me of my old high school. the first day i went there the financial aid director was on the phone arguing with his wife cursing all that. my math teacher takes the role and we cant find her for another fifteen minutes and its an everyday occurrence. The dean is never there and when she is she never have time for conversation. It took me 2 weeks to get a schedule another 2 weeks to actually start my classes because the dean told me that i need to call and get my grades from my transfering school and i asked her if she wanted me to pay to go to the school and do their jobs and she told me i need to go hop on that asap.So therefore i missed classes must i remind you honor student before my arrival here. So if theres anyone out there who is serious about getting a suit started or an organization i would be more than happy to be apart of it. |
| 3/23/04: Realist from Earth says: |
First of all, those of you who are taking the technical school route should be slapped and hosed over like this. Go to a real school. When you go to a job interview and they ask, "What education do you have?" do you really want them to think that you took the easy way out by going to a technical college degree factory? I didn't, so I went and received my BS in CIS from a real college and was even able to pay it off as I went. Only cost around $16000 for books, tuition, lab fees, etc. I only paid around $4000 because I (did I mention that I did it?) checked into financial aid, mainly grants. It wasn't hard because I could spell GOOGLE. Now I am in the process of using other federal GRANT programs to get my certificates. By the time I am done, the FEDERAL GOV will provide me with my CCNA, MCSE, MCDBA, and SCNP at no cost to me. Before you jump on the bandwagon to take the "easy" way out, look into all possible options. Ask a few college graduates that went to real institutions. They will all say the same thing, "Technical schools were built as a hands on establishment to mass produce 'college' graduates." It is a fact. Look it up. Try GOOGLE. Think people. |
| 3/23/04: Karl from Florida says: |
I also attended ITT Tampa, and what burns me the most is that as a Vet, the Government is also in bed with ITT and pushed me to go to ITT instead of USF for a lot less. Now I have a Bachelor Degree thats not worth the paper its wrote on. I find it hard to beleive that I had to prove that I was capable of learning by taking an entrance test because as we all know you can not go from no education to a degree without being well... educated. Well if this is/was the case would one not think that the person confering my degree be himself Educated. Sorry, that was Logic not learned at ITT. |
| 3/23/04: Amazed from Tampa, FL says: |
Being a FORMER employee of ITT for almost 10 years, I can vouch for much of what is being spoken of in the previous articles. I can also add that ITT does not treat their employees or students with any real concern. There are some teachers that truly put their 'all' into the students, but there is also that group that are total 'losers' teaching classes by reading out of the books! I remember students complaining to me about these situations! I also remember the Director at the Tampa campus hiring only 'men' in certain positions. (lawsuits on that one still pending!)I remember people who were out on disability being told to either return to work or consider yourself terminated. Then there was a student whose car was ripped into on school propertyand he would not even look into the known students who committed the crime! And to boot this man supposedly only has a high school diploma himself!! I remember the Director of Financial Aid only has a high school diploma! I remember a female employee sued and won because a teacher made improper advances...with witnesses! And this man still works there! The whole setup is a good ol boy network,,,,you cover my tush and I will cover yours! Poor management trickles down from the top...and it is too bad because it could be a good thing!Now that ITT has the FEDS all over it for possible Financial Aid indescrepencies and a laundry list of other problems at at least 10 of their schools, let's hope that the people at the top where a lot of this illegal 'stuff' goes on gets toppled. They have made millions of dollars while the employees and students work and pay for years. There is a place for technical schools that teach a quality education with real hands-on training. However, ITT is NOT one of them. They have gotten too big and thinkthey can get away with anything,,,and in fact they have in many instances. They are now laying hundreds of people off that have been there for 20 or more years or just short of getting their retirement; thus losing much money! When the home office tells the Recruiters to just get enrollment forms signed and put them through as enrollments to make the stocks rise, then they dump their stocks making millions and of course driving the prices down...making the investors losing thousands....there is something wrong with this picture! I finally have had enough and walked out...along with many others. People who TRULY understand this BUSINESS know that it is a big unmanageble money making machine run by a few greedy people and if the underlings running the local schools want their jobs...they had better do what they are told. Directors of schools make a bonus off of every graduate so they do whatever it takes, in many instances, to keep the paperwork looking good! So my advice is: Buyer Beware! There are some good tech schools out there, but in my opinion, ITT is NOT one of them! |
| 3/24/04: AYE from COLORADO says: |
Hello, AYE here. I am one of those individuals that Itt tech does not want you to talk to. I am one of those people that doesn’t care about how I live or what tomorrow will bring. I have just reached the four-year mark at a company that paid me last year about 50K, (this job I could have done when I was sixteen, but I worked as an Assistant Electronic Technician at General Motors Research and Design center in Warren, Michigan (On thirteen-mile road) instead. (Oh yeah, thank you Emery Yankovich I will never forget you and I am sure you will never forget the 7/32nd of an inch washers either, my employee number was 4095) I have been doing fine but wouldn’t you know it, here comes the student loan people with garnishments. So as I am not one of the people that worries about good credit, (which I finally repaired), I am going to sacrifice every waking hour to find a way to make them pay and pay and pay. I don’t know what will happen to me, maybe they will cause me to loose my job or something worse, but they have already made me loose my house. That was the first time in my life that I had anything that I felt good about. While I was a student at Itt, I tutored about 6 to 8 of my fellow classmates and we all made good grades. I had a 3.8 gpa, until I was told that if I when to another campus I would receive the course work I was complaining that I was not getting at the campus where I was attending and they told me they would make sure I would have a job that would cover all the expenses necessary for me to be successful and not be caused any economic distress while attending that campus. So I am sure you know what happened after that. So the persons with good to say about the school are probably those of whom were given those special jobs so Itt could say; look these students are doing fine. I also have a NATTS certification to teach in a post secondary school and I knew after the last two and a half quarters that we were not given a quality education. Mind you I had this certification before attending class at Itt. Just like all of you I went there with the understanding that I would get a decent not a great education but that which I would benefit to some degree. So if they do publish this thread and you take me serious, all of you that can, take out a little ad in USA today as I am going to next week, (look for it to those who say we are cry babies, I am probably your boss or someone in your family), I am just going to tell the truth. I will not spend my efforts anymore trying to convince those who say we are wrong. Remember with just two people we out number Itt by one. Itt is a corporation as is a marriage, as is an individual. Take the time to take out an ad and watch the lawyers come running after us to defend us in a class action lawsuit that will crumble Itt. I have spent the last fourteen years trying to get the education that Itt promise me. I have patently waited for an opportunity to reach out to those that have also feel into the abyss of this is the real world. No one is saying that they were expecting to get the greatest education but the law says there should be evidence of individuals benefiting from the education. Incidentally, if someone from Itt reads this I did teach electronics for three and a half years, (but in a different area of study), I realized after finishing Itt, loosing my house, contact with my family because I became a dependant all over again, and then spending the last fourteen years working for $7.00 to $10.00 dollars an hour, getting the correct education I came to you looking for. Now I wonder how many of those nay Sayers would do that? I lived in some of the worse parts of towns because I could not afford any better. To my surprise when I told those I lived around why I was there they became out raged and took me under their wings and watched out for me and protected me from the worse of those with us on skid row. When I made good grades at school they encouraged me to go on. Now lets see what you think of this nay Sayers would go through that for you’re education. I also while in school wrote a paper for an IEEE writing contest and I won third place!!!!!!!! I was Seriously on my way to a better education. I had to stop school because my God Mother (who took over the job of being my mother as my mother turned her back on me) had three strokes and became paralyzed on her right side. I being the eldest child in my God given family not my paternal family, had to take my responsibility and come back home to take care of the women you cheered me on through my sufferings, trying to get a good education. Oh yea, the IEEE paper got me immortalized forever as my paper is placed as an ear mark for me by the professor at the University I was attending. Catch the time line guy and girls. I was teaching before going to college! I’ll tell you another fact about me; I graduated High School with a 1.73 GPA. How if we are crybabies was I able to do these things from skid row? I am n |
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