I love how this annoying dickbag never mentions bilking investors by hiding those PEAKS loans from them a few years back until it came to the surface that they had to pay guarantees out of their own pockets when students began defaulting at enormous rates. Thankfully, the "government disruption" like the SEC exists so this absolute tool can't continue to run roughshod over the students and people's retirement accounts (yes, you too, probably owned some at one point if you are in a diversified fund).
22 replies (most recent on top)
"I never knew how annoying his voice sounded"
He is without doubt surprisingly unimpressive for somebody leading a supposed education organization! No surprise then that he has led it as a third rate bean counter who blames everybody but his own mismanagement for the company's woes.
That was my understanding as well, however I expect that ACICS will announce it is removing accreditation, and whether ITT appeals or not, if ACICS is out of business a month later that would certainly discourage anybody else from accrediting them, and seems like they should lose Title IV funding as well.
@1znd, thanks for the info. Don't know why anyone let Modany out of the closet, sounds like he is just spewing usual nonsense.
Sad for students -- the CEO's vitriol and lack of leadership extends to everyone around him, the local managers, spouting the same bullshit.
"So what happens when ACICS declares ITT is not going to be under their accreditation anymore, then gets shut down... That would make it stupid for the DOE to extend the 18 months and ACICS is gone so their accreditation would be instantly unrecognized anyway?"
Modany and the gaggle of lawyers he employs could answer this! But they don't want to tell employees or students anything until they absolutely have to.
Even a creepy business like ITT-Tech has legal rights, so DOE can't rule based on what's stupid or not, they have to follow due process or whatever you want to call it. So many scenarios possible -- we don't even know if ACICS has made decision on ITT-Tech show cause -- but maybe DOE knows? You can guess there's lots of behind-the-scenes stuff going on.
For really bad stuff, I think ACICS can revoke accreditation right away -- if the company is found guilty of illegal stuff for example. But for lesser evils, ACICS might suspend accreditation, which ITT-Tech can appeal.
But in any case, since ACICS will probably appeal, and ITT-Tech will appeal, it is likely they will both be sort-of doing business as usual for a little while at least -- both would still be able to operate under appeal.
BUT the big deal event that is coming is official announcement to students! My understanding is that any blemish on ACICS license or ITT-Tech accreditation -- even if appeals have been filed -- has to be communicated to both current and prospective students. That will be a game changer. Enrollment will tank even faster than it already is!
DOE can take away ITT-Tech's ability to get Title IV funding if they really want to, if ITT-Tech is found guilty in CFPB lawsuit, I believe. So the S__T is hitting the fan now, and is going to be flying fast and furious over the coming weeks.
Yes our campus had to suffer thru that message. I never knew how annoying his voice sounded, ugh... I don't believe s*** that comes out of his mouth esp about the changes and "gov't disruption". There would not be a "gov't disruption" if itt were doing things right! Too busy not caring for their people and students and chewing the heads off of the ones who have a voice. I get all of my info from ITT Warriors & The Layoff. Can't trust him!....and yeah, they were able to make the first installment, thanks to the laid off reps from around the country. All of this sh-- has been occurring for months. I heard that ITT is going to do well and that they're not going anywhere. If I believe that then grits aint groceries! And why did he do a recording vs. a video? W/ all of the public scrutiny, where do they do that at??? It's only a matter of time until they put a padlock on the campus(es). Gotta update my resume w/ the quickness!
So what happens when ACICS declares ITT is not going to be under their accreditation anymore, then gets shut down... That would make it stupid for the DOE to extend the 18 months and ACICS is gone so their accreditation would be instantly unrecognized anyway?
Left ITT years ago and relieved I did. Sick of listening to the snake Modany blow hot air. You can't believe him when he says good morning. Run for the hills folks and with any luck, he will get his soon by the Feds.
Confused here about what Modany is talking about -- who would sue who, and what about? Is CEO just blowing hot air and saying nothing of substance?
I am confused because ACICS response to Dept of Ed final decision would be an appeal -- not lawsuit -- according to Dept of Ed website. And ITT-Tech's response to negative action from ACICS will also be appeal, not lawsuit according to ESI's own 2nd quarter financial statement. More info is posted below.
Can anyone clarify for me? Was not on campus today, am relying on Layoffs post for info these days!
Here's info from Dept of Ed, on possible ACICS appeal of SDO decision (http://www2.ed.gov/admins/finaid/accred/faqs-accrediting-agencies.pdf ):
If the SDO decides to terminate, withdraw or not renew recognition, or to limit recognition to exclude institutions or programs and the agency wishes to appeal the decision, the agency has 10 days from the SDO decision to file its intent to appeal, and 30 days from the SDO decision to file the appeal. The appeal would be considered by the Secretary of Education. Once the appeal is filed, there is no deadline for the Secretary to make a decision on the appeal. If the Secretary decides to uphold the decision to end recognition in whole or in part, the action becomes effective as of the
date of his or her decision. In this scenario, Title IV-participating institutions are
certified and have 18 months from the date of the Secretary’s decision to
secure accreditation by another federally recognized agency to continue participating in
the Title IV, HEA programs without interruption.
Here's info from ITT-Tech on possible appeal by them against ACICS decision (http://www.ittesi.com/index.php?s=127, 10_Q filed July 29, 2016, p.80 ):
If ACICS decides at its August 2016 meeting that the ITT Technical Institutes’ accreditation should be
withdrawn through suspension of accreditation, the ITT Technical Institutes will appeal that action under ACICS’ procedural guarantees. In this case, the ITT Technical Institutes’ accreditation by ACICS
would continue during the appeal process until a final decision is made. If the ITT Technical Institutes ultimately were to lose their ACICS accreditation, they would lose their eligibility to participate in Title IV Programs, in which case we likely would not be able to continue to operate our business.
Guessing no mention of the August ACICS council meeting?? Nothing on the ACICS website, so far. Crickets chirping....
"We have 18 months to get new accreditation if ACICS fails."
Seems like HQ needs to make up their mind. Either ACICS is going to fine and we prepare for the visitation audit next year OR campuses prepare for visits from prospective accreditation.
If ACICS is gutted, who the hell do they think they are going to sue? Their accreditation would be gone overnight??!
Thank you for the updates!
Aside from the typical whining about how those nasty feds who keep intervening in important ITT corporate initiatives like SEC fraud, the midget Leprechaun from Carmel made these important notes:
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We will fund our new capital requirements from the Dept of Ed through "operating revenues" i.e. since enrollment is sinking like a rock we are letting you go to cut costs.
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We have 18 months to get new accreditation if ACICS fails. Well since it takes YEARS to get new accreditation you have a max shelf life provided for you before the Leprechaun makes off with his pot o'gold.
Make no mistake: even if ITT survives the life boat will be a rather small one that hold only ITT corporate and their golden parachutes. ITT really appreciates your commitment because your ultimate sacrifices will line their dirty little pockets. The Leprechaun should have ended with a cheery "That's all Folks!" and the Looney Tunes theme music.
It's just about how we're doing a great job and he appreciates each and everyone of us. Also about how much we paid the dept of Ed in July and the other 2 payments we have remaining in September and November. Also a bunch of BS about how even if the ACICS gets shut down they will sue and that can take years so we will be fine. The whole thing is to keep morale up until they whack more people.
Its him giving the fist to Nicole.
It's probably a "state of the union" type of speech
More whining about re-entry calls?
I haven't heard anything yet.
Please be a teleconference Modany makes in the presence of defense counsel from behind bars at the county pokey!
We have received the notice, but no idea what it is about.
Mandatory staff meeting today, re:Monday.