Tuesday, October 27, 2020

Former CEO of investment firm Pimco faces two years’ jail over bribes in college admission bribery scandal

-

Former Pimco CEO Douglas Hodge, who admitted paying bribes of more than $625,000 (€565,000) to get his children into the University of Southern California (USC) and Georgetown University, should serve two years in prison, US federal prosecutors said in a court filing.

Hodge used a corrupt college admissions counsellor’s “side door” scheme more often and longer than any of the other 35 parents charged in the scandal, prosecutors said. Hodge stopped fighting the charges in October when he pleaded guilty to conspiring to commit fraud and to money laundering, saying he was “ashamed” of his conduct. He faces sentencing on Friday in Boston.

Prosecutors said in Monday’s filing that Hodge paid the bribes over the course of a decade to win places for two children at USC and two at Georgetown, all as phony athletic recruits.

He was secretly recorded in 2018 trying to get a fifth child into Loyola Marymount University, prosecutors said.

- Advertisement -

Hodge’s lawyers contend in their own filing that their client’s crimes are similar to those of Toby MacFarlane, who got six months in prison, the longest sentence given so far in the admissions case. They said Hodge accepts full responsibility and is “unequivocally remorseful.”

Some parents caught up in the scam paid tens of thousands of dollars to rig their children’s entrance exam scores, the government says.

To lock in a seat at elite universities from Stanford to Georgetown to Yale, others allegedly paid hundreds of thousands in bribes for athletic coaches to put their kids’ names on recruiting lists. Some allegedly did both.

The US Department of Justice says it’s the biggest college admissions racket it has ever prosecuted. None of the students or colleges were charged.

- Advertisement -

Among his bribes, Hodge directly paid $150,000 to former Georgetown tennis coach Gordon Ernst, according to prosecutors.

MUST READ

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Former Columbus mayor Eisenga charged with bank fraud

A former Columbus mayor and businessman who was once at the center of a controversial bill aimed at reducing child support payments for wealthy...

UK regulators fine Goldman Sachs £97 million over 1MDB scandal

Goldman Sachs International has been fined £96.6m by UK regulators for risk management failures connected to the 1MDB scandal. The Financial Conduct Authority and Prudential...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks