U.S. charges former Harvard fencing coach, businessman with bribery scheme

By Nate Raymond

BOSTON (Reuters) – A former Harvard University fencing coach and the chief executive of a telecommunications company were arrested on Monday on charges that they engaged in a bribery scheme aimed at securing the admission of the businessman’s two sons to the Ivy League school.

Federal prosecutors in Boston said that Jie “Jack” Zhao paid more than $1.5 million in bribes so that Peter Brand, the former coach, would help his sons get into Harvard by recruiting them to the men’s fencing team.

The charges followed an investigative report by the Boston Globe last year into how Brand sold his home to Zhao for over its assessed market value. Harvard in July 2019 fired the longtime coach following the report.

The Globe’s report came a month after federal prosecutors in March 2019 unveiled the first charges in the U.S. college admissions scandal, in which wealthy parents engaged in bribery and cheating schemes to secure spots for their children at selective universities.

That investigation has led to charges against 57 people, including celebrities and corporate executives. U.S. Attorney Andrew Lelling called the latest case “part of our long-standing effort to expose and deter corruption in college admissions.”

Lawyers for Brand and Zhao, who co-founded iTalk Global Communications Inc, did not respond to requests for comment.

Prosecutors said that in 2013, Zhao made a $1 million donation to a fencing charity operated by an unnamed co-conspirator that, in turn, contributed $100,000 to a foundation established by Brand and his wife.

Zhao also paid for Brand’s car, made college tuition payments for his son, paid the mortgage on his home and later bought the residence from the coach for above its market value, prosecutors said.

That purchase allowed Brand to buy a more expensive home in Cambridge, Massachusetts, which Zhao paid to renovate, they said.

(Reporting by Nate Raymond in Boston; Editing by Jonathan Oatis and Bill Berkrot)

Actress Lori Loughlin pleads not guilty in college admissions case

FILE PHOTO: Actor Lori Loughlin, and her husband, fashion designer Mossimo Giannulli, leave the federal courthouse after facing charges in a nationwide college admissions cheating scheme, in Boston, Massachusetts, U.S., April 3, 2019. REUTERS/Brian Snyder/File Photo

By Nate Raymond

BOSTON (Reuters) – Actress Lori Loughlin said on Monday she will plead not guilty to charges that she participated in what prosecutors say was the largest college admissions scandal uncovered in U.S. history.

Loughlin, who starred in the television sitcom, “Full House,” and her fashion designer husband Mossimo Giannulli filed papers in federal court in Boston seeking to waive their personal appearances at an arraignment hearing and have not guilty pleas entered on their behalf.

They are among 50 people accused of participating in a scheme that allowed wealthy parents to use cheating and bribes to help their children secure spots at universities like Yale, Georgetown and the University of Southern California (USC).

California college admissions adviser William “Rick” Singer has pleaded guilty to charges that he facilitated cheating on college entrance exams and bribed coaches at universities to falsely present the parents’ children as athletic recruits.

Loughlin, 54, and Giannulli agreed with Singer to pay $500,000 to have their two daughters named as recruits to USC’s crew team, prosecutors said, even though they did not row competitively, to help them gain admission.

The couple and several other parents were originally charged with conspiracy to commit mail and wire fraud. Prosecutors secured an indictment on April 9 that included an additional charge of conspiring to commit money laundering.

In all, 33 parents have been charged in the college admissions scandal. Of those, 14 have agreed to plead guilty, including “Desperate Housewives” TV star Felicity Huffman.

(Reporting by Nate Raymond in Boston; Editing by Jeffrey Benkoe)

Students tied to U.S. college admissions scandal could face expulsion

FILE PHOTO: A sign is pictured on the grounds of University of Southern California in Los Angeles, California, U.S., March 13, 2019. REUTERS/Mario Anzuoni

By Gabriella Borter

(Reuters) – The University of Southern California said it may expel students linked to the largest college-admissions cheating scandal in U.S. history after it completes a review of their records.

The school said on Monday night that it has already “placed holds on the accounts of students who may be associated with the alleged admissions scheme,” preventing them from registering for classes or acquiring transcripts.

“Following the review, we will take the proper action related to their status, up to revoking admission or expulsion,” the college said in a tweet on Monday night.

The move would affect the daughters of “Full House” actress Lori Loughlin and fashion designer Mossimo Giannulli. The parents were among 50 people charged last week with participation in what federal prosecutors called a $25 million bribery and fraud scam.

The mastermind of the scheme last week pleaded guilty to racketeering charges for bribing coaches, cheating on standardized tests and fabricating athletic profiles to help children of wealthy families gain admission to top universities including Yale, Stanford and Georgetown.

A spokesman for Georgetown on Tuesday said the school would not comment on disciplinary action against individual students linked to the scandal but added that it is “reviewing the details of the indictment, examining our records, and will be taking appropriate action.”

Yale, UCLA, and the University of Texas said last week that any students found to have misrepresented any part of their applications may have their admission rescinded. Stanford said it is “working to better understand the circumstances around” one of its students linked to the scheme.

Wake Forest’s president said in a statement last week, “We have no reason to believe the student was aware of the alleged financial transaction.”

Prosecutors said some students involved in the scandal were not aware that their parents had made the alleged arrangements, although in other cases they knowingly took part. None of the children were charged.

Several celebrities and corporate executives charged in the scandal have already felt career consequences.

The Hallmark cable channel last week cut ties with Loughlin for her alleged role in the fraud.

(Reporting by Gabriella Borter in New York; Editing by Jeffrey Benkoe and Steve Orlofsky)