Biggest U.S. college fraud bust nets actors Felicity Huffman, Lori Loughlin

[webfact]

Biggest U.S. college fraud bust nets actors Felicity Huffman, Lori Loughlin

By Nate Raymond

 

FILE PHOTO: The Hoover Tower rises above Stanford University in this aerial photo in Stanford, California, U.S. on January 13, 2017. REUTERS/Noah Berger/File Photo

 

BOSTON (Reuters) - Federal authorities arrested dozens on Tuesday for a $25 million scheme to help wealthy Americans, including actresses Felicity Huffman and Lori Loughlin and some CEOs, cheat their children's way into elite universities, such as Yale and Stanford.

 

The largest college admissions fraud scam unearthed in U.S. history was run out of a small college preparation company in Newport Beach, California, that relied on bribes to sports coaches, phony test takers and even doctored photos depicting non-athletic applicants as elite competitors to land college slots for the offspring of rich parents, prosecutors said.

 

"These parents are a catalog of wealth and privilege," Andrew Lelling, the U.S. attorney in Boston, said at a news conference. "For every student admitted through fraud, an honest, genuinely talented student was rejected."

 

William "Rick" Singer, 58, pleaded guilty on Tuesday to charges related to running the scheme through his Edge College & Career Network, which charged from $100,000 to as much as $2.5 million per child for the services, which were masked as contributions to a scam charity Singer runs.

 

"I was essentially buying or bribing the coaches for a spot," Singer said as he pleaded guilty to charges including racketeering, money laundering and obstruction of justice. "And that occurred very frequently."

 

John Vandemoor, a former Stanford University sailing coach who worked with Singer, also pleaded guilty to racketeering conspiracy.

 

It was the latest in a series of scandals that have rocked the high-stakes, high-stress world of admissions to top colleges. Prosecutors in Boston in recent years have also charged Chinese nationals with cheating on entrance exams, while the College Board, which administers the SAT tests, was rocked in 2016 by a security breach that exposed hundreds of questions planned for tests.

 

Some 300 law enforcement agents swept across the country to make arrests in what agents code-named "Operation Varsity Blues." Huffman and Loughlin were due to appear in federal court in Los Angeles later on Tuesday, prosecutors said.

 

Prosecutors have so far named 33 parents, 13 coaches, and associates of Singer's business.

 

Other parents charged include Manuel Henriquez, the chief executive of specialty finance lender Hercules Capital; Gordon Caplan, the co-chairman of international law firm Willkie Farr & Gallagher; Bill McGlashan Jr., who heads a buyout investment arm of private equity firm TPG Capital; and Douglas Hodge, the former CEO of the investment management firm Pimco.

 

Representatives for the companies and for Huffman and Loughlin, either declined to comment or did not respond to requests for comment.

 

The alleged masterminds of scam and parents who paid into it could all face up to 20 years in prison if convicted.

 

Huffman, a former best actress Oscar nominee who is married to actor William H. Macy, starred in ABC's "Desperate Housewives." Loughlin, best known for her role in the ABC sitcom "Full House" and the recent Netflix sequel "Fuller House," is married to clothing company founder Mossimo Giannulli, who was also charged in the scheme.

 

'HELP THE WEALTHIEST'

On a call with a wealthy parent, prosecutors said, Singer summed up his business: "What we do is help the wealthiest families in the U.S. get their kids into school ... my families want a guarantee."

 

Prosecutors said it was up to the universities what to do with students admitted through cheating.

 

Yale University and the University of Southern California (USC) said in separate statements that they were cooperating with investigators.

 

"The Department of Justice believes that Yale has been the victim of a crime perpetrated by its former women's soccer coach," Yale said in a statement.

 

The coach, Rudolph Meredith, resigned in November after 24 years running the women's soccer team. Meredith, who accepted a $400,000 bribe from Singer, is due to plead guilty, prosecutors said. His lawyer declined to comment.

 

Prosecutors said the scheme began in 2011 and also helped children get into the University of Texas, Georgetown University, Wake Forest University and the University of California, Los Angeles (UCLA).

 

Part of the scheme involved advising parents to lie to test administrators that their child had learning disabilities that allowed them extra exam time.

The parents were then advised to choose one of two test centers that Singer's company said it had control over: one in Houston, Texas, and the other in West Hollywood, California.

 

Test administrators in the those centers took bribes of tens of thousands of dollars to allow Singer's clients to cheat, often by arranging to have wrong answers corrected or having another person take the exam. Singer would agree with parents beforehand roughly what score they wanted the child to get.

 

In many cases, the students were not aware that their parents had arranged for the cheating, prosecutors said, although in other cases they knowingly took part. None of the children were charged on Tuesday.

 

Singer also helped parents stage photographs of their children playing sports or even Photoshopped children's faces onto images of athletes downloaded from the internet to exaggerate their athletic credentials.

 

Wake Forest said it had placed head volleyball coach Bill Ferguson on administrative leave after he was among the coaches accused of accepting bribes.

 

According to the criminal complaint, investigators heard McGlashan of TPG Capital listening to Singer tell him to send along pictures of his son playing sports that he could digitally manipulate to make a fake athletic profile.

 

"The way the world works these days is unbelievable," McGlashan said to Singer, according to court papers.

 

(Reporting by Nate Raymond in Boston; Additional reporting by Jonathan Allen, Joseph Ax and Gabriella Borter in New York and Brendan O'Brien in Milwaukee; Writing by Jonathan Allen; Editing by Scott Malone and Bill Berkrot)

 

 

-- © Copyright Reuters 2019-03-13

[neeray]

Win at any cost seems to be in vogue. Cheat all you can, JUST DON'T GET CAUGHT !

This story involves America but it is far from the exclusive domain of America. At this very time, we are seeing it all around the globe.

Want to win an election. Just cheat your way to success !

[Cryingdick]

48 minutes ago, neeray said:

Win at any cost seems to be in vogue. Cheat all you can, JUST DON'T GET CAUGHT !

This story involves America but it is far from the exclusive domain of America. At this very time, we are seeing it all around the globe.

Want to win an election. Just cheat your way to success !

 

This is an amusing development for sure. As far as cheating to an election win both sides try it and one side wins.

[Tug]

Sadly I’m not in the least surprised but keeping this kind immoral behavior in the spotlight will help to stamp it out

[Emdog]

Went outside normal channels by paying coaches for admission rather than usual one of donating to school foundations.

Trump could never get into Wharton without "donations", Bush Jr could never get into Harvard based on academic scores ( although Jr seems a genius compared to current WH occupant)

[Prissana Pescud]

No one is the world is surprised at this news.

The fact that it is uncovered on Mr Trumps watch is surprising,

I suspect he was watching other issues and failed to protect his very rich contribution base.

No doubt someone will be dismissed.

TIT, This is Thailand.

No, OITUS. Only in the US.

 We are all waiting for a list of some of the more amusing and absurd "names" that "got in".

We already know about Bush Jr and the incumbent.

Yay USA

[Cryingdick]

trump trump trump trump... when does it ever end?

[lannarebirth]

This isn't the biggest college entry fraud. Enrolling too many foreign students at triple tuition rates thereby displacing local students is. To add insult to injury they try to get them H1B visas to take their job later as well.  Anyhow, some pretty stupid parents here. Their money would have been better spent on tutors.

[Cryingdick]

2 minutes ago, lannarebirth said:

This isn't the biggest college enytry fraud. Enrolling too many foreign students at triple tuition rates thereby displacing local students is. To add insult to injury they try to get them H1B visas to take their job later as well.  Anyhow, some pretty stupid parents here. Their money would have been better spent on tutors.

 

Using (giver)ment money to fund Japanese courses in Iowa and other worthless degrees was a mistake. The colleges need to make their own loans from here on out. $58,000 a year if you want to study Japanese cultural studies in Grinnell Iowa. 

 

I am using an over simplified example but there is not much worth in the degrees colleges sell using government money.

[Berkshire]

This is the true essence of capitalism. 

[canuckamuck]

6 minutes ago, Berkshire said:

This is the true essence of capitalism. 

No, it is the true essence of how things work with humans. Even in socialism, there is an elite class that doesn't have to play by the rules. And everyone else gets the state schools.

The capitalism part of this is they got caught breaking rules.

[kamahele]

Always surprised when parents who worked hard for their money, starting from nothing, then turn around and help their spoiled kids cheat their way through life. I expect that from old money.

[Cryingdick]

3 minutes ago, kamahele said:

Always surprised when parents who worked hard for their money, starting from nothing, then turn around and help their spoiled kids cheat their way through life. I expect that from old money.

 

Yes because the nouveau rich Hollywood elite are of a higher upbringing. Are you feeling well?

[lannarebirth]

29 minutes ago, Berkshire said:

This is the true essence of capitalism. 

My kids just got through college. Perhaps the two most privileged kids on earth. Holidays were a treat when they'd come home to talk about MY privilege. Explanations of life in the projects were deemed micro agressions. Anyhow, I digress. This OP is what privilege looks like.

[Berkshire]

2 minutes ago, canuckamuck said:

No, it is the true essence of how things work with humans. Even in socialism, there is an elite class that doesn't have to play by the rules. And everyone else gets the state schools.

The capitalism part of this is they got caught breaking rules.

Fair point.  What I was alluding to is that one aspect of capitalism is inequality.  It's by design.  In theory, if you work harder, are smarter, more innovative, more creative, you can create more wealth for yourself.  But capitalist society in the modern day is nothing like that.  Which is why hedge fund managers, athletes, celebs, etc., make a lot more than doctors, teachers, engineers, etc.  In a capitalist society, the best predictor of success is the wealth of your parents.  These people in the OP believe that they are privileged and that the rules don't apply to them because of their wealth.  As for socialism and communism, those systems were actually designed to ensure equality.  But you're right, humans have not evolved to the point where they can run those systems as it was designed.  If the government has too much power and control, the people running it will almost always become corrupt. 

 

[bristolboy]

The thing is the rich have always gamed the system legally. Many years ago there was a journalistic investigation about getting into Harvard. One of the apparently unworthy students featured in the study was none other than Jared Kushner. And his father-in-law's admission into the University of Pennsylvania was greased by a 1.5 million dollar donation.

[neeray]

54 minutes ago, Cryingdick said:

trump trump trump trump... when does it ever end?

Hopefully it will be soon.

Can't be too soon though. No such thing.

[lannarebirth]

26 minutes ago, canuckamuck said:

No, it is the true essence of how things work with humans. Even in socialism, there is an elite class that doesn't have to play by the rules. And everyone else gets the state schools.

The capitalism part of this is they got caught breaking rules.

Actually, in America anyway, most of the state schools are very good with many being elite. That's why foreigners want to get into them. University of Washington, UC Berkeley, UCLA, these are really great schools that have taken WAY too many foreign students when they should be serving the families within the state that pay for their existence. 

[bristolboy]

4 minutes ago, lannarebirth said:

Actually, in America anyway most of the stqte schools are very good with many being elite. That's why foreigners want to get in them. University of Washington, UC Berkeley, UCLA, these are really great schools that have taken WAY too many foreign students when they should be serving the families within the state that pays for their existence. 

It used to be that state schools were very inexpensive. Then Republicans took over lots of statehouses and costs started to climb drastically. They still are a good deal compared to most private universities but not nearly as good a deal as they used to be.

[Cryingdick]

1 minute ago, lannarebirth said:

Actually, in America anyway most of the stqte schools are very good with many being elite. That's why foreigners want to get in them. University of Washington, UC Berkeley, UCLA, these are really great schools that have taken WAY too many foreign students when they should be serving the families within the state that pays for their existence. 

 

You also pay more as an American if you live out of state. It isn't a thing against foreigners. In this regard American universities are at the forefront and will continue to do well. This is because you have the added opportunity of getting a reasonable chance of staying and that is a factor in the price.

[lannarebirth]

Just now, bristolboy said:

It used to be that state schools were very inexpensive. Then Republicans took over lots of statehouses and costs started to climb drastically. They still are a good deal compared to most private universities but not nearly as good a deal as they used to be.

Costs are climbing mostly to build lots of new building in order to cement future large budget allocations. I'm not sure why you need a new building to teach an English, psychology, whatever class. 

[neeray]

In business, I deal with many men/women who obviously hold a degree, or, I notice it proudly displayed on their wall in their corner office. Many come across as not too sharp (politely put). Some as downright dummies (not so politely put). Perhaps their Mommies and Daddies bought their way into University Whatever.

Occasionally I get asked what university I went to. I am always very proud to tell them U of SS.

 

(U of SS = University of Street Smarts)

[Somtamnication]

Well, looks like it won't be a Full House anymore but a Full Jail! LOL

[bristolboy]

9 minutes ago, bristolboy said:

It used to be that state schools were very inexpensive. Then Republicans took over lots of statehouses and costs started to climb drastically. They still are a good deal compared to most private universities but not nearly as good a deal as they used to be.

"At the beginning of last decade, college students who went to public universities paid for about one-third of their education. Today, in more than half the states, they pay for most of it... Research by Douglas Webber, an associate professor in economics at Temple University, has found that colleges raise tuition by about $300 for every $1,000 in funds cut by the state."

https://www.washingtonpost.com/education/2018/09/08/states-decision-reduce-support-higher-education-comes-cost/?utm_term=.a4ba092d0699

"Students at public four-year institutions paid an average of $3,190 in tuition for the 1987-1988 school year, with prices adjusted to reflect 2017 dollars. Thirty years later, that average has risen to $9,970 for the 2017-2018 school year. That's a 213 percent increase."

https://www.cnbc.com/2017/11/29/how-much-college-tuition-has-increased-from-1988-to-2018.html

[Pravda]

At least they get caught, charged and publicly shamed in US.

 

This is why I don't trust hospitals here. A sweeping generalization indeed and sure there are some good doctors, but the fact you have to do an extensive research to find them is concerning.

[bristolboy]

13 minutes ago, lannarebirth said:

Costs are climbing mostly to build lots of new building in order to cement future large budget allocations. I'm not sure why you need a new building to teach an English, psychology, whatever class. 

You have any data at all to back that up? It sounds like nonsense to me.

A Lost Decade in Higher Education Funding

State Cuts Have Driven Up Tuition and Reduced Quality

https://www.cbpp.org/research/state-budget-and-tax/a-lost-decade-in-higher-education-funding

[Ulic]

I fully understand how this all works in the US. Pressure to get into top schools is fierce. Many of these schools only are only known to Americans. To get into these schools is over the top difficult. Unless genius smart, even those getting in under affirmative action are far above average. Those getting in through sports performance as well cannot be dummies. Their sporting performance is a big addition but SAT scores have to be strong. Let the chips fall where they may in this prosecution. Parents just trying to do what they can for their kids, anyway they can and because they have money, they are using that as well. 

[Ulic]

9 minutes ago, bristolboy said:

"At the beginning of last decade, college students who went to public universities paid for about one-third of their education. Today, in more than half the states, they pay for most of it... Research by Douglas Webber, an associate professor in economics at Temple University, has found that colleges raise tuition by about $300 for every $1,000 in funds cut by the state."

https://www.washingtonpost.com/education/2018/09/08/states-decision-reduce-support-higher-education-comes-cost/?utm_term=.a4ba092d0699

"Students at public four-year institutions paid an average of $3,190 in tuition for the 1987-1988 school year, with prices adjusted to reflect 2017 dollars. Thirty years later, that average has risen to $9,970 for the 2017-2018 school year. That's a 213 percent increase."

https://www.cnbc.com/2017/11/29/how-much-college-tuition-has-increased-from-1988-to-2018.html

The schools that these people are trying to get into are not State schools. These schools are all in the 40k-50k a year. Of course, there is a lot of financial aid available to help low-income families but it is still incredibly expensive.

[Cryingdick]

38 minutes ago, lannarebirth said:

Costs are climbing mostly to build lots of new building in order to cement future large budget allocations. I'm not sure why you need a new building to teach an English, psychology, whatever class. 

 

Simply servicing the debt will become more than defense spending soon. The student loan scam has to end. It can no longer survive. 

[Chomper Higgot]

As an amusing distraction:

 

Boston and Stamford derive their names from small towns in Lincolnshire England.

 

These towns have renamed their technical colleges from Boston/Stamford Technical College, to  Boston/Stamford College.

 

Since doing so they are doing a roaring trade recruiting Chinese Students.

 

The fakery spreads.