In August 2016, the U.S. Department of Education forbade the company to enroll new students using federal student aid. In September of that year, ITT permanently shuttered its campuses and soon after filed for bankruptcy.
In 2017, the company resolved the SEC’s charges without admitting wrongdoing and avoiding monetary penalties. Later in 2017, Modany and Fitzpatrick failed in an attempt to reach a settlement with the SEC when commissioners voted to reject their offers.
Earlier this year, a federal judge ruled that former ITT students could participate in ongoing bankruptcy proceedings against the company in recognition of a student-led lawsuit alleging breach of contract.
As part of the settlement, Modany and Fitzpatrick both agreed to a five-year bar from serving as officers or directors of public companies, and have been suspended from practicing and appearing before the SEC as accountants. Additionally, Modany agreed to pay $200,000 in civil penalties, while Fitzpatrick agreed to pay $100,000.