ITT Educational (ESI) Shares Fall After SEC Request for Documents

By on February 26, 2013

Shares of ITT Educational Services (NYSE: ESI) fell 16.64%, down to $15.53 per share, after the Securities and Exchange Commission (SEC) asked to see documents concerning “actions and accounting” for financial programs that assisted students with education expenses which were not covered by state, federal and other funding paths.

ITT Educational announced on February 25, that it received a subpoena from the SEC on February 8, along with a letter informing the education company of the probe.

For-profit colleges have been under the government’s radar in recent years as lawmakers investigate whether these schools have been using aggressive recruitment and marketing tactics, along with improper financial reimbursements.