The SF Chronicle's Matthias Gafni Reports
Stanford University and its sailing team were implicated Tuesday in a nationwide college admissions cheating and bribery scheme that ensnared Hollywood actresses, CEOs, high-profile college coaches and the alleged leader of the scam.
The Edge College and Career Network, also known as “The Key,” was operated by William Rick Singer, who also operated a charity called Key Worldwide Foundation, federal prosecutors said. Singer, who lived in Sacramento and Newport Beach, was indicted on multiple counts of money laundering, racketeering, fraud and obstruction of justice, according to documents unsealed Tuesday.
The federal complaint alleges that in fall 2017, Stanford sailing coach John Nicholas Vandemoer agreed to designate the child of one of Singer’s clients as a recruit for the team in exchange for a payment to that program. Vandemoer, 41, will plead guilty Tuesday to charges related to the case, according to U.S. Department of Justice officials.
As part of the scheme, Singer and others allegedly created a student-athlete application to the prestigious college falsely claiming the unidentified incoming student was a competitive sailor.
By May 2018, the applicant deferred his application to Stanford for a year and Singer directed a $110,000 payment from one of his charity’s accounts to the Stanford sailing program in exchange for the coach’s agreement to designate the boy as a recruit the next year, prosecutors said.
Later that summer, the boy decided to attend a different university, but Vandemoer allegedly agreed with Singer to use that same recruiting spot for another of Singer’s clients in exchange for a $500,000 payment to the program.
Again, Singer and others created a college application for the new “recruit” that falsely indicated the teen was a competitive sailor, even though the student “had minimal sailing experience,” federal prosecutors said. Again, that student decided against applying to Stanford, but Singer nonetheless paid the sailing program $160,000 from his charity, according to the criminal complaint.
Singer and Vandemoer agreed that the payment would serve as a deposit for a future recruit, officials said.
Vandemoer could not immediately be reached for comment.
At a news conference Tuesday, U.S. Attorney Andrew E. Lelling said the investigation caught 33 parents nationwide, exposing “a catalogue of wealth and privilege.” The parents included CEOs for private and public companies, security investors, actresses Felicity Huffman and Lori Loughlin, a fashion designer and chairman of a global law firm.
Lelling said Singer helped his wealthy clientele cheat on SAT and ACT tests, provide fake photos and athletic credentials, and then bribe elite college officials on average with $250,000 to $400,000 per student. In some cases parents spent as much as $6.5 million, prosecutors said. The parents would make “donations” to Singer’s charity, which were then flipped to bribe coaches.
Once admitted to school, some of the “recruits” never showed up to the team practice, others faked injuries and some played briefly before quitting. But most of the students — none of whom were charged — continue to be enrolled at the colleges.
Aside from a USC administrator, prosecutors do not believe school officials beyond coaches were involved.
The investigation started a little over a year ago and remains ongoing, Lelling said, as prosecutors believe more parents and coaches took part in the scheme.
San Francisco Chronicle staff writer Kim Veklerov contributed to this report.
Matthias Gafni is a San Francisco Chronicle staff writer.