ITT/ESI Will Fight The SEC's Unfounded Charges
CARMEL, Ind., May 12, 2015 /PRNewswire/ -- ITT Educational Services, Inc. is deeply disappointed in the U.S. Securities and Exchange Commission's mistaken decision to bring an enforcement action against the company.
We vehemently disagree with the SEC's position and we are confident that the evidence does not support the SEC's claims. We are eager to have the court clear our reputation that has been unnecessarily endangered by the SEC's action.
The SEC takes issue with ESI's handling and disclosure of complex accounting issues that arose several years ago. Throughout the relevant time period, we repeatedly expanded our disclosures in an effort to present material information to investors. We also repeatedly conferred with outside experts, as well as our outside, registered independent auditor. We shared extensive information with these experts to confirm that our accounting treatment was reasonable and appropriate. The company's robust record of consultation and deliberation rebuts any allegation of wrongdoing.
The company has fully cooperated during the SEC's investigation, and has engaged in extended discussions with the SEC's Office of the Chief Accountant. The SEC's disagreement with the company's reasonable approach to the complex accounting issues at the heart of this matter would have been more appropriately handled in other ways and certainly should never have reached this stage. Unfortunately, the SEC's Enforcement Division chose to bring this unfair case.
ESI has additionally reached out to the U.S. Department of Education, accrediting agencies and appropriate state regulatory authorities to ensure they understand the company's legal and financial position. We look forward to helping ensure that they have all of the information necessary to inform their judgment, and to share the basis for our strong views about the misguided and inappropriate nature of the SEC's action. We would expect any regulator would refrain from taking any action against the company, and thereby against our students and employees, until we have had our day in court.
ESI is a financially responsible company, committed to dedicating the necessary resources to our defense while keeping the highest priority of the company clear: assisting students in their efforts to complete their education and obtain work in their chosen field of employment.
ESI and our more than 10,000 employees are exceptionally proud of the work we have done to benefit more than one million students over the last 45 years, and we fully intend to continue our mission of improving students' lives through the pursuit of high-quality, career-focused education.
About ITT Educational Services, Inc.
ITT Educational Services, Inc. (NYSE: ESI) provides technology-oriented undergraduate and graduate degree programs through its accredited postsecondary institutions, ITT Technical Institutes and Daniel Webster College, to help students develop skills and knowledge that they can use to pursue career opportunities in a variety of fields. It owns and operates more than 130 ITT Technical Institutes and Daniel Webster College. ITT/ESI serves approximately 50,000 students at its campuses in 39 states and online. Through the Center for Professional Development @ ITT Technical Institute, ITT/ESI provides short-term information technology and business learning solutions for career advancers and other professionals. Headquartered in Carmel, IN, ITT/ESI has been actively involved in the higher education community since 1969 and can be found online at www.ittesi.com.
SOURCE ITT Educational Services, Inc.
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