ITT Educational president quits amid federal probes

INDIANAPOLIS (AP) — ITT Educational Services Inc. is losing its officer best connected to the government while federal investigations proceed into its record keeping.

President and Chief Operating Officer Omer E. Waddles, a former top legislative aide and lobbyist in Washington, has resigned from his two title positions effective July 20 and is leaving the company that operates a chain of technical schools, the company said Monday.

ITT said his departure is not related to Justice Department and Securities and Exchange Commission investigations. They focus on whether the company falsified records on student attendance, grades, and graduate job placements and misrepresented whether other schools accepted credits earned at its ITT Technical Institutes.

But the company also offered no explanation for why he was leaving. Its stock fell $3.01, or 8.1 percent, to close at $34.30 Monday on the New York Stock Exchange.

The company based in suburban Carmel has not been charged with any wrongdoing.

Waddles, 44, joined ITT in April 1999. Since becoming president and chief operating officer in January 2002, the number of ITT campuses has grown to 77 in 30 states from 68. Enrollment rose 46 percent to 38,000 from 26,000.