Campus Raid

[TexasStooge]

Federal agents serve warrants at several ITT Technical Institutes

INDIANAPOLIS, Indiana (AP) — Classes resumed Thursday at campuses of ITT Technical Institute in eight states, a day after authorities served warrants and searched records in an investigation into the nationwide chain.

Authorities would not say why they conducted Wednesday's searches, which caused classes to be canceled at 10 of the company's 77 campuses. Students were turned away and faculty and staff were questioned.

ITT spokesman David Treier said operations were back to normal Thursday.

"To our knowledge, all the buildings are open to employees and students," Treier said.

Parent company ITT Educational Services Inc., said in a statement Thursday that it was continuing to cooperate with investigators.

The investigation involved grand jury subpoenas of records concerning student placement, retention, graduation, attendance, recruitment, grades, graduates' salaries and transfers of students' credits to other colleges, the company said Wednesday.

About 68 percent of the company's 2003 revenue of nearly $523 million came from federal education aid programs, according to a company regulatory filing. And most ITT students pay a substantial portion of their tuition and other expenses with money received under federal programs.

ITT spokeswoman Nancy Brown said she did not know whether federal aid was the focus of the probe.

Law enforcement officers were investigating at ITT's 150-employee headquarters in suburban Indianapolis and at 10 campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California and Oregon. In all, the company has campuses in 30 states.

ITT provides postsecondary, year-round courses to about 37,000 students, according to the company's annual regulatory filing. The company, which employs about 3,000, began operations in 1969, and offers courses primarily leading to associate's and bachelor's degrees with an emphasis on technical fields.

Company revenues last year rose about 15 percent, due in part to a 5 percent tuition increase last March and a 6 percent increase in student enrollment.

Shares of the parent company fell 33 percent on Wednesday and continued declining Thursday morning.

[wx247]

hmmm...I wonder what this is about?