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On March 12, 2019, United States federal prosecutors disclosed a conspiracy to influence admissions decisions at several American research universities, with at least 50 people alleged to have been part of it. A number of parents of college applicants are accused of paying more than $25 million between 2011 and 2018 to William Rick Singer, a college admissions counselor and leader of the scheme who used part of the money to misrepresent student test scores and bribe college officials. Singer controlled the two firms involved in the scheme, Key Worldwide Foundation and The Edge College & Career Network, and also pleaded guilty in the process of supporting the Federal Bureau of Investigation (FBI) gather incriminating evidence against co-conspirators. He said he unethically facilitated college admission for more than 750 families. Prosecutors in the District of Massachusetts have unsealed indictments and complaints against 50 people, including Singer, the university staff he bribed, and people who are alleged to have used bribery and fraud to secure admission for their children at nine universities. Among the accused parents are prominent businesspeople and well-known actors. The FBI is still pursuing the investigation, nicknamed Operation Varsity Blues after the 1999 film. The case is the largest of its kind to be prosecuted by the Justice Department.
|Venue||United States District Court for the District of Massachusetts|
William Rick Singer via
On March 12, 2019, United States federal prosecutors disclosed a conspiracy to influence admissions decisions at several American research universities, with at least 50 people alleged to have been part of it. A number of parents of college applicants are accused of paying more than $25 million between 2011 and 2018 to William Rick Singer, a college admissions counselor and leader of the scheme who used part of the money to misrepresent student test scores and bribe college officials.
Singer controlled the two firms involved in the scheme, Key Worldwide Foundation and The Edge College & Career Network, and also pleaded guilty in the process of supporting the Federal Bureau of Investigation (FBI) gather incriminating evidence against co-conspirators. He said he unethically facilitated college admission for more than 750 families. Prosecutors in the District of Massachusetts have unsealed indictments and complaints against 50 people, including Singer, the university staff he bribed, and people who are alleged to have used bribery and fraud to secure admission for their children at nine universities. Among the accused parents are prominent businesspeople and well-known actors. The FBI is still pursuing the investigation, nicknamed Operation Varsity Blues after the 1999 film. The case is the largest of its kind to be prosecuted by the Justice Department.
The FBI alleged that beginning in 2011, certain parents of high school students conspired with other people to use bribery and other forms of fraud to get their children admitted to top colleges and universities. Authorities reportedly became aware of the scheme around April 2018 when Morrie Tobin, who was under investigation in an unrelated case for alleged pump-and-dump securities fraud, offered information in exchange for leniency. An alumnus of Yale, he told authorities that the Yale women's soccer head coach, Rudolph "Rudy" Meredith, had asked for $450,000 in exchange for helping his daughter gain admission to the school. As part of his cooperation, Tobin wore a recording device while talking to Meredith in a Boston hotel on April 12, 2018; Meredith subsequently agreed to cooperate with the authorities and led them to Singer. Meredith pled guilty as part of his cooperation with the prosecution.
On March 12, 2019, federal prosecutors in Boston unsealed a criminal complaint charging 50 people with conspiracy to commit mail fraud and honest services mail fraud in violation of Title 18 United States Code, Section 1349. The charges were announced by Andrew Lelling, United States Attorney for the United States District Court for the District of Massachusetts. Lelling heads the securities and financial fraud unit, which includes the lead Assistant U.S. Attorney Eric Rosen, and ADAs Justin O’Connell, Leslie Wright, and Kristen Kearney. The 204-page affidavit in support of the charges was written by FBI special agent Laura Smith.
Federal prosecutors alleged a college-admission scheme that involved:
Court documents unsealed in March 2019 detail a scheme led by William Rick Singer, a 58-year-old resident of Newport Beach, California. Wealthy parents paid Singer to get their children admitted to elite schools by bribing admissions testing officials, athletics staff, and coaches at universities. Payments were made to Key Worldwide Foundation, a nonprofit organization owned by Singer and previously granted 501(c)(3) status; that status allowed him to avoid federal income taxes on the payments, while parents could deduct their "donations" from their own personal taxes. Singer offered college counseling services as The Edge College & Career Network, a limited liability company registered in 2012, which he operated out of his home in Newport Beach.
The first involved cheating on the SAT or ACT college admission tests. Singer worked with psychologists to complete the detailed paperwork required to certify clients' children as having a learning disability, giving them access to accommodations, such as extra time, while taking the tests. Singer said he could get a falsified disability report from a psychologist for $4,000 to $5,000, and that the report could be re-used to fraudulently obtain similar benefits at the schools.
Once the paperwork was complete, Singer told clients to invent false travel plans to get their children's tests moved to a test center under his control in West Hollywood or Houston. Parents might be advised to fabricate a family event that could provide a pretense for the student to take the SAT, ACT or other test at a private location where they could have complete control over the testing process.
In some cases, the student was involved directly in the fraud; in others, the fraud was kept secret from the student and corrupt proctors altered tests after the fact. In some cases, other people posed as the students to take the tests. Mark Riddell, a Harvard alumnus and college admission exam preparation director at IMG Academy, was allegedly one of the stand-in test takers; he agreed to plead guilty and cooperate with investigators. Prosecutors claim he was paid $10,000 per test, and he faces two criminal charges for conspiracy to commit mail fraud and money laundering.
According to recorded phone calls included in court filings, Singer claimed that the practice of fraudulently obtaining accommodations such as extra testing time, intended for those with bona fide learning disabilities, was widespread outside of his particular scheme:
Yeah, everywhere around the country. What happened is, all the wealthy families that figured out that if I get my kid tested and they get extended time, they can do better on the test. So most of these kids don’t even have issues, but they’re getting time. The playing field is not fair.
For example, Jane Buckingham was arrested on March 12, 2019, for allegedly submitting false paperwork saying her son had a learning disability and paying $50,000 to Key Worldwide Foundation for a proctor to take the ACT on her son's behalf, scoring a 35 out of 36. The goal was entrance to the University of Southern California. Portions of recorded conversations between Buckingham and a cooperating witness were included in the FBI's affidavit.
The second method used by Singer was bribing college athletics staff and coaches. At certain colleges, they can submit a certain number of recruit names to the admissions office, which may then view those applications more favorably. Singer used his Key Worldwide Foundation as a money-laundering operation to pay coaches a bribe for labeling applicants as athletic recruits. He also fabricated profiles highlighting each applicant's purported athletic prowess. In some cases, image editing software was used insert a photograph of a student's face onto a photograph of another person to document purported athletic activity.
In one such incident, Michael Center, the men's tennis coach at Texas, accepted about $100,000 to designate an applicant as a recruit for the Texas Longhorns tennis team. A similar fraud occurred at Yale, where the then-head coach of the women's soccer team, Rudolph "Rudy" Meredith, allegedly accepted a $400,000 bribe to falsely identify an applicant as a recruit. USC's senior associate athletic director Donna Heinel and water polo coach Jovan Vavic allegedly received $1.3 million and $250,000, respectively, for similar frauds. They were indicted alongside former USC women's soccer coaches Ali Khosroshahin and Laura Janke. Coaches at two other Pac-12 programs, UCLA men's soccer coach Jorge Salcedo and Stanford sailing coach John Vandemoer, also allegedly accepted bribes. Vandemoer admitted to accepting $270,000 to classify two applicants as prospective sailors. At Wake Forest, head volleyball coach William "Bill" Ferguson was placed on administrative leave following charges of racketeering. Former Georgetown tennis coach Gordon "Gordie" Ernst is alleged to have facilitated as many as 12 students through fraudulent means while accepting bribes of up to $950,000. An unnamed athletics coach at the University of San Diego allegedly accepted bribes; two San Diego families were accused of paying $875,000 as part of the scheme.
Bill McGlashan, a private equity investor, allegedly discussed using Photoshop to create a fake profile for his son as a football kicker to help him get into USC. Similarly, Marci Palatella, wife of former San Francisco 49ers player Lou Palatella, allegedly worked with Singer to pass her son off as a long snapper recruit for USC. In one of the most notable cases, actress Lori Loughlin, famous for her role on the American sitcom Full House, and her husband, fashion designer Mossimo Giannulli, allegedly paid $500,000 in bribes to get their two daughters accepted into USC as members of the rowing team, although neither girl had participated in the sport.
Singer was charged with racketeering conspiracy for his role as the organizer of the scheme. Money was allegedly funneled through a 501(c)(3) organization formed by Singer, the Key Worldwide Foundation, in the form of purported charitable donations. Singer pleaded guilty on March 12, 2019, in the U.S. District Court in Boston to four felony counts of conspiracy to commit money laundering, conspiracy to defraud the United States, and obstruction of justice. He faces up to 65 years in prison and a fine of $1.25 million.
A total of 50 people have been charged in the investigations. This number includes 33 parents of college applicants, and ten named collegiate coaches or athletic administrators from several universities.
|University||Athletic program||Sport||Indicted personnel|
|Georgetown University||Hoyas||Tennis||Gordon "Gordie" Ernst, former tennis coach|
|Stanford University||Cardinal||Sailing||John Vandemoer, former sailing coach|
|University of California, Berkeley (UC Berkeley)||Golden Bears||N/A||No staff members have been directly named or implicated.|
|University of California, Los Angeles (UCLA)||Bruins||Men's soccer||Jorge Salcedo, men's soccer coach and former Major League Soccer player, placed on leave|
|University of San Diego (USD)||Toreros||N/A||No staff members have been directly named.|
|University of Southern California (USC)||Trojans||Multiple||Donna Heinel, former senior associate athletic director|
|Women's soccer||Laura Janke, former women's soccer coach|
|Ali Khosroshahin, former women's soccer coach|
|Men's water polo||Jovan Vavic, former men's water polo coach|
|University of Texas at Austin (UT)||Longhorns||Men's tennis||Michael Center, former men's tennis coach|
|Wake Forest University||Demon Deacons||Volleyball||William "Bill" Ferguson, volleyball coach, placed on academic leave|
|Yale University||Bulldogs||Women's soccer||Rudolph "Rudy" Meredith, former women's soccer coach, pled guilty in cooperation with the prosecution and led prosecutors to Singer|
Administrators at the involved universities have claimed a lack of awareness regarding the scandal within their athletic departments. All accused athletic department staff have since been fired or placed on academic leave.
Officials have said Singer had many legitimate clients who did not engage in any type of fraud. Singer cited famous clients on his Facebook page while promoting his 2014 book Getting In and, as a result of this and other public endorsements by Singer, many former clients have made statements to distance themselves and their children from any perceived involvement in the scandal.
|Not indicted in this case||Yale||Morrie Tobin||Daughter||Offered information on the case to prosecutors in exchange for leniency on his unrelated fraud charge; purportedly was asked for a bribe by Meredith in exchange for getting Tobin's daughter into Yale|
|Admissions||USC||Gamal Aziz||Daughter||Former President and COO of Wynn Resorts and former CEO of MGM Resorts International|
|Mossimo Giannulli||Two daughters (including Olivia Jade)||Fashion designer at Mossimo|
|Lori Loughlin||Actress best known for her role on Full House|
|Douglas M. Hodge||Children||Former CEO of PIMCO|
|Georgetown||Elisabeth Kimmel||Daughter||Media businesswoman and former owner of KFMB Stations|
|UCLA||Bill McGlashan||Son||Former managing partner and founder of TPG Growth|
|USC||Marci Palatella||Son||Distillery owner and wife of former San Francisco 49ers guard Lou Palatella; Lou has not been indicted|
|Testing||ACT||Jane Buckingham||Son||Marketing executive and self-help book author|
|Gordon Caplan||Daughter||Co-chairman of law firm Willkie Farr & Gallagher|
|SAT||Felicity Huffman||Daughter||Academy Award-nominated actress best known for her role on Desperate Housewives and wife of actor William H. Macy; Macy has not been indicted|
Canadian high school graduation exam
Potentially resulted in admission to UC Berkeley
|David Sidoo||Sons||Canadian businessman and former Canadian Football League player|
In response to the scandal, the National Collegiate Athletic Association (NCAA), the chief governing body for college sports in the United States, announced plans to review the allegations "to determine the extent to which NCAA rules may have been violated".
U.S. Senator Ron Wyden (D-OR), of the Senate Finance Committee, plans to sponsor a bill making donations to schools taxable if the donor has children attending or applying to college. Separately, Senators Chris Coons (D-DE) and Johnny Isakson (R-GA) have agreed to reintroduce 2017 legislation that imposes a fine on colleges and universities that have the smallest proportion of low-income students.
Indicted coaches were fired or suspended, or had already left the university at the time of the charges. Mark Riddell, accused of taking tests on behalf of the students, has been suspended from his position as director of college entrance exam preparation at IMG Academy.
The Hallmark Channel cut its ties to Lori Loughlin, star of the program Garage Sale Mystery and When Calls the Heart, after she was named as a parent in the indictments. According to The Hill, Netflix decided to drop Loughlin from Fuller House as well. Her youngest daughter Olivia Jade also lost her partnership with TRESemmé and the Sephora chain of beauty products. It was reported by TMZ, Page Six, and others that Loughlin's daughters dropped out of USC due to fears of being "viciously bullied"; however, a USC spokesperson later confirmed that they both remained enrolled at the school. On March 13, 2019, media sources reported that, when news of the scandal broke Loughlin's younger daughter was on Rick Caruso's yacht in the Bahamas with her friend, Gianna, Caruso's daughter. Caruso is the chairman of the USC Board of Trustees.
Multiple lawsuits were immediately filed against universities and individuals. Three students from Tulane University, Rutgers University, and a California community college filed a complaint against Singer and the affected universities that they hope will be certified as a class-action suit. A Stanford undergraduate claimed a loss for the time and money she spent applying to schools named in the scandal, as well as the possibility that the stain on Stanford’s reputation will decrease the value of her degree. A parent filed a $500 billion civil suit in San Francisco against all the indicted individuals, claiming that her son was denied admission to some schools because of other parents buying access.
After the scandal broke, multiple American news sources characterized it as a symptom of a broken college admissions system. Alan Dershowitz, professor emeritus at Harvard Law School, said it was "the worst scandal involving elite universities in the history of the United States". Elizabeth Warren, United States Senator from Massachusetts (where all the criminal cases were filed), told news media that the scandal represented "just one more example of how the rich and powerful know how to take care of their own".
Much news coverage was devoted to attempting to explain why anyone would have been tempted by Singer's scheme. A common attribute among the defendants was that many were rich, but not ultrarich. According to The New York Times, college admissions at certain elite American universities had become so selective that a family would have to make a minimum donation of $10 million to inspire an admission committee to take a second look at their child. And even for families of such means, there would be no guarantee of return on investment, while Singer was selling certainty. In open court, he said: "I created a guarantee." The Los Angeles Times explained that there was probably also a social signaling element at work, in that admission to an elite university based purely upon an applicant's apparent merit publicly validates both the child's innate talent and the parents' own parenting skills in a way that an admission coinciding with a sizable donation does not.
Lori Loughlin and Mossimo Giannulli's 19-year-old daughter was on the yacht of billionaire Rick Caruso, the chairman of USC's Board of Trustees, during Tuesday's indictment that charged the couple in a nationwide college cheating scandal.
As Lori Loughlin traveled from Vancouver to L.A. Tuesday night to surrender to federal authorities in the college bribery scandal -- which got her daughter, Olivia Jade, into USC -- Olivia spent the night on the yacht of the Chairman of USC's Board of Trustees
Olivia Jade, social media influencer and daughter of actress Lori Loughlin, was apparently spending her spring break on a yacht owned by USC board of trustees member Rick Caruso when the news broke that her mother was part of an epic college bribery case.
TMZ reported late Wednesday afternoon that Lori Loughlin's daughter Olivia Jade Giannulli had been traveling in the Bahamas on a yacht owned by Rick Caruso, the chairman of the USC Board of Trustees