Pimco employees allegedly used the so-called legitimate college prep services of William Rick Singer, according to a statement from Pimco, Pacific Investment Management Co.
Singer reportedly twice made speeches in the past decade at events hosted by Pacific Investment Management Co, has been accused by federal authorities of allegedly bribing athletic coaches and purportedly arranging for fraudulent test-takers to lock in clients’ children spots at elite universities, such as Yale, Stanford, and Georgetown.
Douglas Hodge, the former CEO of Pimco, is one of the parents who allegedly paid Singer in order to gain an upper hand with university admissions for their children. Hodge allegedly paid over $500,000 to allow two of his children to be admitted to the University of Southern California (USC) as athletic recruits.
Singer left Pimco in 2017.
Pimco has released the following statement:
Pimco holds its employees to the highest ethical standards, so any employee found to have engaged in fraud or any illegal activity would have no place at the firm… (and Pimco) has never had a business relationship with Rick Singer or his college preparation organization… (and Pimco) has never had a business relationship with Rick Singer or his college preparation organization.
The case has caught national attention as it has included Hollywood actresses Lori Loughlin and Felicity Huffman. Loughlin was reportedly dropped by the company that owns the Hallmark cable channel due to her alleged part in the fraud, and LVMH’s Sephora beauty chain ended a sponsorship deal with her daughter, Olivia.
In sum, prosecutors in the case claim that Singer allegedly brought in $25 million from the case, according to reports.
Advantage Lithium Corp Chief Executive David Sidoo First Parent to Please Not Guilty
Advantage Lithium Corp Chief Executive David Sidoo has become the first of the 33 charged parents in the national scandal to purportedly plead not guilty.
Sidoo has since been replaced
Sidoo, who was temporarily replaced by Advantage Lithium’s board of directors, said little in court, but his lawyers claim that he looks forward to challenging the case.
Singer, meanwhile, recently pleaded guilty to allegedly masterminding the scheme. The alleged scandal has put a spotlight on the enormous lengths that wealthy and powerful Americans have gone to allegedly cheat the high-stakes and high-pressure college admissions system.
Other big name executives accused in the scheme include:
- Manuel Henriquez, who resigned as CEO of specialty finance company Hercules Capital Inc
- Gordon Caplan, who has been placed on leave from his post as co-chairman of the global law firm Willkie Farr & Gallagher
- TPG Capital private equity partner William McGlashan Jr., who was reportedly fired by the firm
Singer and the aforementioned parents alleged to have paid into the scheme could face up to 20 years in prison if convicted.
There have also been reports that USC, one of the alleged schools involved through bribes paid to sports coaches, has taken back admissions offers to six students involved in the scheme.
Finally, USC has further stated that it will review the actions to take against current students who took part.