I was laid off about 5 weeks ago. Those of us in Admissions were the first to be let go. It was done in an incredibly professional way. We received severance pay, letters clearly stating it was due to a Reduction in Force, a corporate contact's name and phone number who we could call for any questions we had, and everything we needed to ensure our unemployment filings would go smoothly.
Now, how did ITT get into this situation? Good old fashioned CORPORATE GREED! It was discovered that some top executives, including CEO Kevin Modany, were responsible for reporting false information including but definitely not limited to graduate placement rate statistics. However, my understanding is that the biggest offense is that Modany was the architect of a scheme regarding convincing students and prospective students to take out loans (above and beyond typical student loans) that would excessively distort ITT's financial stability on paper.
Further, my understanding is that these loans have caused financial hardship to these particular students in which they may never financially recover. However, I openly admit that I am unclear regarding the specifics, and I very well may not have the facts straight regarding the impact on those students involved. What I do know is that Modany and Dan Fitzpatrick, CFO, have been under indictment. The accrediating body, ACICS, has either been intentionally looking the other way or been involved in the malfeasance themselves.
The accrediting body is supposed to be the watch dog to ensure these kind of things don't happen...think Enron and Arthur Anderson (my brother worked for Enron and lost almost everything when they went down in 2001). Arthur Anderson was supposed to be auditing and monitoring them and we know how that turned out. I say thank goodness for the Dept. of Education! Think of the financial lives of students that may have been ruined!
Everything in me wants to see CEO Kevin Modany in an orange jumpsuit as he rots in prison. This villains salary has been at least 7 million dollars annually (while I received one small raise the entire three years I worked there). I hope and pray the DOE comes down hard on them. At this point, I'd like to see them do a little suffering.