SAN FRANCISCO (KRON) — The California Department of Veteran Affairs has ordered the ITT Technical Institute and Daniel Webster College to stop enrolling students who plan to pay for their classes with the GI Bill.

An agency within the department that sanctions training programs to serve veterans issued a suspension notice to the for-profit college.

ITT Educational Services operates schools in 39 states under the names ITT Technical Institute and Daniel Webster College. There are 15 campuses within California.

The Security and Exchange Commission filed a fraud complaint against the Indiana-based company this week over an alleged scheme to cover up losses from student loans ITT had guaranteed to its investors.

Department of Veterans Affairs spokesman Paul Sullivan says about 1,400 California veterans are attending ITT schools on the GI Bill.

ITT did not respond to requests for comments.