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ITT Tech Being Investigated by Justice Department and SEC

February 2004

ITT Technical Institute, a nationwide computer trade school, is under federal investigation for its operations. Federal investigators served subpoenas and seized records in raids at ten ITT campuses in February. Allegations have been made against ITT Tech for unfair and deceptive business practices, made by former and current students, in addition to former employees of the institute.

Students have claimed unethical, high-pressure sales pitches are used to lure students to enroll at ITT Tech. ITT Tech has said the investigators are looking into alleged falsification of records on student attendance, grades and graduate job placement. The data figures are used to qualify ITT Tech's federal education aid. Based on the amount of documents involved in the investigation, in addition to the complexity of it, it could be some time before the case is resolved.

To better protect from fraud, the Better Business Bureau recommends consumers look at multiple school catalogues and study them to compare courses, rates of completion and job placement percentages. Students of ITT Tech have alleged they were given false information on the success rate of ITT Tech graduates, including salary and hire rate. Students have also reported after dropping classes the institute continued to bill their Sallie Mae guaranteed student loan.

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