Securities fraud investigation reveals corruption scandal at universities

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Authorities have opened an investigation into the vast scandal of college admissions after receiving advice from a leader that prosecutors were targeting in the context of an investigation into a securities-related fraud.

BOSTON – The biggest scandal involving admissions to schools ever sued began with a board of a senior investigator in a securities-related fraud investigation, an enforcement official said Thursday. of the law.

The executive told the Boston authorities who were pursuing the market manipulation ploy that Yale University's women's football coach said he would qualify his daughter as a rookie in exchange for a sum of money. announced the manager. The official was not allowed to discuss the case and spoke under the guise of anonymity.

The investigators recorded a meeting between the executive and the coach in a hotel room in Boston in April 2018. During the meeting, described in court documents, Rudy Meredith told the father that he would help his daughter to enter Yale in exchange for $ 450,000. Meredith accepted $ 2,000 cash in the hotel room and gave instructions to management on how to transfer the rest of the money, authorities said.

Meredith began cooperating with the investigation that same month in hopes of being sentenced to a lesser sentence, prosecutors said. Meredith, who resigned from Yale in November, has agreed to plead guilty to wire fraud charges. A message was left Thursday on Meredith's phone.

The Wall Street Journal first reported the source of the tip. The authorities have not publicly identified the executive power.

At least nine sports coaches and 33 parents, many of whom are prominent in the fields of law, finance, fashion, food and beverages and other fields, have been charged. Among them are Hollywood stars Felicity Huffman and Lori Loughlin.

Prosecutors said the parents had hired an admissions consultant to bribe coaches and administrators to falsely give their kids the appearance of star athletes to increase their chances of being accepted. Some parents have spent hundreds of thousands of dollars, up to $ 6.5 million, to guarantee the admission of their children, officials said.

The consultant also hired jury members to take college entrance exams and paid insiders from test centers to correct student responses, authorities said.

US Massachusetts lawyer Andrew Lelling said the investigation was continuing and the authorities thought other relatives were involved. The IRS is also investigating, with some parents apparently disguising bribes as charitable donations.

The consultant, William "Rick" Singer, pleaded guilty to charges of fraud and conspiracy in federal court Tuesday in Boston. Singer's lawyer told reporters that he plans to cooperate fully with prosecutors.

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