This place went off a cliff years ago, but nobody wants to admit it. Stock down 15% today and not a peep. Corrupt CFO leaves, not a peep. Can't wait until this fraudulent waste of taxpayer money finally gets shut down.
11 replies (most recent on top)
There is only one way to go with fraud like this one: Close it down ASAP!
I agree, and it was always about math, but what about me and tens of thousands of former ITT students who got lied to or fed BS about the debt load only to find it double or triple when we finally finished up, in the worst hiring environment in a century. My credit is trashed, I am actually going to remove ITT from my resume because I've read countless times that people can't even get an interview with that listed. I've had Sallie Mae nuking my phone 8 times a day for years, and there isn't one thing I can do legally about it, unlike every other form of debt there is including debt from gambling and flipping houses.
Whatever the outcome, ITT Tech's business model is unsustainable. Just word-of-mouth resistance is leading to the the long slow demise of this company. The crazy thing is that ESI could see what was happening to Corinthian Colleges and Education Management Corporation and they fell into the same short-term profits trap. Blum is divesting, leaving Vin Weber and a few cronies to try keeping the school breathing...................https://www.linkedin.com/pulse/itt-techesi-faces-monumental-troubles-dahn-shaulis?trk=mp-author-card
673 - Still, the environment was created on purpose it seems like to allow this very kind of greed. Yes what ITT executives did should be illegal and punishable with jail time, but that would also mean jailing every other executive at dozens or even hundreds of colleges, and also half of the department of education, and even a few senators. They didn't jail one person on wall street for the intentional derivatives fraud that led to the housing collapse, so I doubt they will on this mess either. Tens of millions of former students are now left with giant balances and crappy jobs and no way to get rid of this albatross that threatens to destroy their lives.
8628: I may agree with you but I also think that the executives must be held accountable for the actions of the company as they ARE the company. If they know ahead of time that fraudulent activities will result to jail time, I bet none of this would be happening. Putting them in jail and taking all of their assets, it would serve as a warning to the rest of the for profit executives.
Who would they jail? If anybody they should be jailing people from the department of education, since none of this would be possible without their full approval and active shielding of information to the public of the scope of carnage and waste. Republicans also directly enabled this whole mess by removing bankruptcy protections, which should be common sense. What did they think would happen when none of the risk went to the government or schools, and students living in areas with no jobs had no choice but seek out education regardless of the cost? In every sense of the word it was gambling debt, yet it can't be discharged like gambling debt.
Until the executives of companies like this and CCI go to jail for their actions, this kind of mess will continue. Even if they close it today the only people who are going to get hurt are the students and employees. The executives will walk away with millions of dollars and live happily ever after. Jail time for the executives is the way to go
@Anonymous98354, you are absolutely right about the DoEd's complicity in ITT Tech's bad behavior. Thay have know about it for years, but have done very little to stop it. The CFPB case is a small effort in relation to the economic damage that many working class people have gotten. That's why ITT Tech students are organizing a resistance. The word has gotten out about ITT Tech, and this is leading to lower enrollments. It's sad but the US government will probably do more to prop up ITT Tech, which will embolden ESI executives to keep the game going (and not seriously reforming). Insiders last night told me that these failing schools may become powderkegs of working-class frustration. It certianly sounds like it's becoming more chaotic.
CK - The backstop still is the corrupt department of education for both companies, and the department of education was always more than half the problem anyway. Begging the same corrupt watchdog that allowed and even fostered this environment to exist is doomed to fail.
Students and former students of ITT Tech (the ITT Tech Warriors) are also demanding that their loans be forgiven in their "defense of repayment" paperwork. They are claiming (rightfully so) that they were defrauded and that the US government was well aware of the fraud. At some point, it's very possible that the Debt Collective will be taking their cases, as they have taken the Corinthian100.
Down another 15% today, and not a peep. Internal emails have already been leaked and former employees are already talking to the media, CFPB and DoE, only a matter of time before this hits the fan twice as messy as Corinthian.