Crimes in the College Admissions Scam

Recently, the news has been plastered with the headlining story of the college admissions scandal, the largest in college admissions scam ever prosecuted in the U.S. The scheme began in 2011, which enabled celebrities and wealthy elite to buy their child’s’ way into prestigious private universities through a for-profit Newport Beach college admissions company, Edge College & Career Network.

While top CEOs, two big named actresses, and a legendary fashion designer have all been formally charged with criminal complaints, questions arise as to their part in the scheme. Is it any different from big time school donors? Are the charges serious? Will they really spend time in the slammer?

To learn more about the criminal component of this complex college scheme dubbed “Operation Varsity Blues” by the FBI, continue reading.

The Criminal Charges

William “Rick” Singer

The mastermind behind the scheme, William Singer, instructed parents to donate to his fake charity, the Key Worldwide Foundation. Collectively, parents paid $25 million to secure their children’s chances of being accepted into an elite university. Subsequently, parents were able to use the donation as a tax write off to the Internal Revenue System (IRS).

Once caught, Singer cooperated with authorities in September of 2018, making a total of 34 calls to clients at the direction of law enforcement. In many of these calls, parents admitted to knowledge of the scam and agreed to naming their payments as “donations to charity”, further implicating them.

Ultimately, Singer was charged with money laundering, obstruction of justice, racketeering and conspiracy to defraud the United States. These charges often carry heavy fines and prison time. According to court documents, Singer faces the following maximum penalties on the charged accounts:

• Conspiracy to commit racketeering: incarceration for twenty years, supervised release for three years; a fine of $250,000 or twice the gross gain/loss, whichever is greater; a mandatory special assessment of $100; restitution; forfeiture to the extent charged in the information.
• Conspiracy to commit money laundering: incarceration for twenty years, supervised release for three years; a fine of $500,000 or twice the gross gain/loss, whichever is greater; a mandatory special assessment of $100; restitution; forfeiture to the extent charged in the information.
• Conspiracy to defraud the United States: incarceration for twenty years, supervised release for three years; a fine of $250,000 or twice the gross gain/loss, whichever is greater; a mandatory special assessment of $100; and restitution.
• Obstruction of Justice: incarceration for 5 years; supervised release for three years; a fine of $250,000; and a mandatory special assessment of $100.

The Parents

The 33 parents involved in the scheme have been charged in the case, with possibly more indictments on the way. Majority of their charges are conspiracy to commit mail fraud, honest services mail fraud, and/or wire fraud. For the 19 parents who chose not to plead guilty to the crimes listed previously, they have been hit with a new charge or money laundering in addition to mail fraud.

These felony criminal charges fall into what is often called “white collar crimes”. According to white collar crimes lawyer George H. Ramos, Jr., “The term ‘white collar crime’ when initially defined (1939) meant crimes that were being committed by otherwise law-abiding citizens of high stature. Now white collar crime is defined simply as a wide range of nonviolent criminal acts generally committed for monetary gain.”

Mail fraud makes it illegal to use the postal service to carry out any scheme or artifice to defraud. Honest services fraud is when someone of power abuses the position of trust to commit bribery or receive a kickback. “Wire fraud” was also added to include email and all other forms of electronic communication. According to release from the US Attorney’s Office, “The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater.”

As for the parents that did not choose to plead guilty, they will be facing the heavier charges of money laundering, one of the many charges against William Singer.

The Coaches

Thirteen coaches and associates of Singer’s businesses are facing criminal charges as well. John Vandemoer, the head sailing coach at Stanford University, Rudolph “Rudy” Meredith, the former head soccer coach at Yale University, and Mark Riddell, a counselor at a private school in Bradenton, Florida are among the charged. Their participation in the scam includes the admission of students under the guise of being recruited as athletes, when many did not have any experience playing the alleged sport.

The coaches face similar charges to both the parents and Singer. Their charges range from conspiracy to commit mail fraud and honest services mail fraud to racketeering conspiracy and conspiracy to commit money laundering.

Graduating from Criminal Activity

Surprisingly, the FBI was tipped off about the largest college admissions scam in the United States to date due to a disgruntled Boston businessman who wanted leniency in his own federal case. Chances are majority of the parents, coaches, staff, and William Singer will have to pay hefty fines and/or restitution in addition to spending time behind bars to “graduate” from their crimes.

If the parents wanted to do it the right way and not make a mockery of themselves and their children, they should have followed the legal yet not-so-accessible way: paying for a tutor or making massive donations. Or be like the rest of us and study hard.

In the wise words of Countess Luann, “Money can’t buy you class. Elegance is learned.” Stay studious my friends.