A Los Angeles man under investigation for securities fraud tipped federal investigators to a wide-ranging college admissions scam. That investigation led to the arrests of 50 people, including prominent actors and businessmen.
Prior to receiving the tip, federal investigators did not know of the college admissions conspiracy. In it, the primary suspect-turned-cooperating-witness guaranteed admission to some of the country’s most selective schools. California schools involved in the scheme included USC, UCLA and Stanford. The scam also targeted other highly selective colleges and universities.
The original tipster was attempting to provide information to federal investigators in order to get lenient treatment for sentencing. The man, a Yale alumnus, faced fraud charges related to a pump-and-dump scheme. He told investigators that a Yale coach had sought a bribe to admit the man’s daughter to the school. The man agreed to wear a wire to a meeting with the women’s soccer coach. That conversation led to additional revelations about a larger college admissions conspiracy.
The Yale investigation revealed connections to William Rick Singer of Newport Beach, who operated a pay-to-attend scheme. In it, parents paid exorbitant fees to have their children’s SAT scores, transcripts, applications and other materials favorably altered. Coaches at other schools also participated in the scheme, identifying some applicants as preferred sports recruits. Designating students as preferred recruits guaranteed their admission to the school. Singer agreed to cooperate with federal authorities and subsequently implicated dozens of parents. In many cases, the students did not know someone else altered their admissions materials.
Affected universities are now trying to determine whether to allow students admitted under the scheme to continue. Since the scheme began in 2011, some erroneously admitted students have already left their universities. USC has already said that it will deny admission to any involved students currently in the application process. The University has also placed a registration hold on admitted students whose parents participated in the scheme.
Los Angeles securities fraud attorney
When you face charges related to investment fraud, hire an experienced securities fraud attorney like Robert Helfend. Mr. Helfend has more than 30 years of experience in criminal defense. He takes cases in any federal circuit in the United States. He also takes state cases in Los Angeles County and throughout Southern California.
Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
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