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.
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SOURCE ITT Educational Services, Inc.