This is Part 1 of an article series analyzing the U.S. federal implications of the college admissions and testing bribery scandal. This article provides an overview of important facts and background information. Part 2 delves into the specific charges against William “Rick” Singer, the mastermind of the entire scheme. Part 3 examines the federal consequences for various parents who participated in the scandal through the lens of Lori Loughlin and Mossimo Giannulli.
In March of 2019, the Department of Justice (DoJ) announced arrests and charges in a nationwide conspiracy, what is now commonly known as the College Admissions Scandal. This scandal involved behind-the-scenes cheating and bribery to gain access to high-ranking universities under false pretenses.
The DoJ charged 50 defendants with multiple violations of U.S. federal law, including racketeering, money laundering, fraud, and conspiracies to commit the same. For a complete breakdown of every defendant and charging document in this sprawling federal case, see the official DoJ list here.
William “Rick” Singer was the mastermind of the College Admissions Scandal, operating two organizations to facilitate the overall scheme. Singer owned Edge College & Career Network LLC (“The Key”), a for-profit business providing college counseling and preparation services. He also created Key Worldwide Foundation (“KWF”), a nonprofit organization disguised as a charity.
From 2011 to early 2019, Singer conspired with various parties to secure unlawful admission into elite universities, including Georgetown, Stanford, and Yale. Essentially, Singer offered wealthy parents a pay-for-play route to guarantee their children would get into a certain school. To achieve this end, Singer facilitated cheating, bribery, and fraud on many levels.
There were three major components to the College Admissions Scandal: cheating on college entrance exams and bribing test administrators; bribing college officials to secure admission under false pretenses; and conspiring to commit tax fraud and conceal the bribes.
Cheating on College Entrance Exams
Singer used a multifaceted process to help his clients cheat on college entrance exams, including the SAT and ACT. First, Singer would tell his clients to request additional time on the exams, due to apparent learning disabilities or other disorders.
After using medical accommodations to secure additional time, Singer would then have his clients choose specific testing centers – either a private school in California or a public school in Texas. Singer bribed test administrators at both of those schools to facilitate cheating, paying up to $10,000 for each fraudulent test.
The methods used to cheat varied from case to case. Sometimes, the test administrators allowed a co-conspirator to take the entrance exam on a student’s behalf. Other times, the co-conspirator would supply the correct answers during the test or change the student’s answers after the fact.
Singer charged his clients up to $75,000 for each fraudulent test. These payments went through Singer’s nonprofit organization, KWF, to disguise the funds as charitable donations. Apparently, many of the students had no idea their test results were fraudulent.
Bribing College Officials
Singer’s clients paid approximately $25 million in bribes to various college officials to secure guaranteed admission. Singer marketed this concept as a shortcut to ensuring acceptance to a particular college, misrepresenting many students as accomplished athletes.
To make this lie more believable, Singer directed The Key and KWF to create fake profiles for many students. These profiles described fake athletic achievements and awards, even including staged photos in certain instances. Singer used the apparent corporate reputation of his organizations to make the profiles seem legitimate.
The clients made payments to KWF disguised as charitable donations. Singer then send funds to college officials – both directly and personally as well as indirectly to other organizations. These bribes ensured that the students would be considered athletic recruits and ensured admission, even despite the presence of false information.
Conspiring to Commit Tax Fraud
As noted previously, Singer instructed certain clients to make payments to KWF to disguise the funds as charitable donations. This practice began around 2013, enabling certain clients to falsely exclude their payments from federal income taxes.
For these clients, Singer did not directly charge for his services. Instead, he would direct the clients to make apparently charitable donations to KWF. Then he would use the funds to bribe test administrators and college officials. Singer also used some of the funds to misrepresent students as potential athletic recruits.
To further obscure these payments, KWF would send “thank you” letters to the parents. The letters expressed gratitude for charitable donations that would help underserved communities. There was also a statement falsely stating that the charitable donations were not made in exchange for goods or services.
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