On May 12, 2015, the SEC brought fraud charges against ITT Educational Services, Inc., its CEO Kevin Modany, and its CFO Daniel Fitzpatrick, alleging that the defendants fraudulently concealed from ITT's investors the poor performance of two student loan programs that ITT financially guaranteed.

On May 13, 2015, the SEC announced that on May 12, 2015, it SEC filed fraud charges against ITT Educational Services, Inc., its CEO Kevin Modany, and its CFO Daniel Fitzpatrick. According to the SEC: "the 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."

According to the SEC: " "The Securities and Exchange Commission having filed a Complaint against ITT Educational Services, Inc. ("ITT") in the United States District Court for the Southern District of Indiana (the "District Court"), and ITT and its debtor affiliates subsequently having commenced voluntary proceedings pursuant to chapter 7 of title 11 of the United States Code (the "Bankruptcy Cases"), in the United States Bankruptcy Court for the Southern District of Indiana (the "Bankruptcy Court") on September 16, 2016 (the "Petition Date"), the Bankruptcy Cases having been procedurally consolidated under Bankruptcy Case No. 16-07207-JMC-7A"

On June 8, 2018, the SEC filed an amended complaint alleging: "ITT Educational Services, Inc. ("ITT"), an operator of for-profit colleges, its chief executive officer Kevin M. Modany, and its chief financial officer Daniel M. Fitzpatrick (collectively, the "Defendants"), engaged in a fraudulent scheme and course of business and made various false and misleading statements and omissions to defraud ITT's investors by concealing the extraordinary failure of two off-balance sheet student loan programs, and the looming effect of that failure on ITT's financial condition."