Bribing Their Way Into College

[0] From the New York Times, I'm Michael Barbaro.

[1] This is the Daily.

[2] Today, when a federal prosecutor revealed a $25 million scheme to purchase college admissions for the children of celebrities and executives, he declared, quote, there can be no separate college admission system for the wealthy.

[3] But there is.

[4] It's Thursday, March 14th.

[5] We're here today to announce charges in the law.

[6] largest college admissions scam ever prosecuted by the Department of Justice.

[7] We've charged 50 people nationwide.

[8] We've participating in a conspiracy that involved first.

[9] Jenny and Katie, where does this story begin?

[10] So according to prosecutors, the first lead in this case came about a year ago.

[11] Katie Banner covers the Department of Justice.

[12] Jennifer Medina is a national correspondent for the Times.

[13] So the story begins with a totally different investigation.

[14] Federal prosecutors are investigating an entirely separate case when one of the targets in that investigation gave them a huge tip.

[15] There could be a bribery and cheating scandal occurring in the college admissions process.

[16] The feds think that this is pretty interesting, and it turns out...

[17] They discovered a man named Rudolph Meredith, the soccer coach at Yale, and they thought that he might be taking money in order to falsely recruit students to the team so they could get into the university.

[18] Once the FBI understands how big a deal this is going to be, and as they investigate, and more and more schools become involved, they bring in more and more investigators.

[19] They give this a name, Operation Varsity Blues.

[20] As in the James Vanderbeak movie.

[21] As in the James Vanderbeak movie.

[22] Which we all saw.

[23] I didn't see.

[24] Dozens of actors, coaches, and CEOs are among those charged.

[25] The former CEO of Pimco, the investment firm.

[26] Actresses, Felicity Huffman, and Lori Loughlin.

[27] You also have William Mcglashen.

[28] He's a senior exec at TPG.

[29] Huffman starred on ABC's Desperate Housewives, and Luckland is best known for her role on Full House.

[30] And it all leads back to this guy in Newport Beach, California, who charges somewhere in the ballpark of $15 ,000 to more than a million dollars to guarantee your kid a spot in a school.

[31] And who is this guy in Newport Beach, California?

[32] So this guy is Rick Singer.

[33] Hi, my name is Rick Singer, and I'm the founder of the key.

[34] Singer is a guy in his 50s who lives in Newport Beach, California.

[35] As a father myself, I understand the stress that college admissions process can put on your family.

[36] He is sort of a player in this world of academic coaches who help students, oftentimes who can pay a lot of money, get into colleges, including some of the nation's top schools, Yale, Stanford, Harvard.

[37] For the past 25 years, our coaches have been helping students discover their life passion in guiding them and their families through the complex college admissions maze.

[38] He was doing legitimate college counseling work, catering to the wealthy, trying to get their kids to school, but legitimate stuff.

[39] My key method unlocks the full potential of your son or daughter and sets them on a course to excel in life.

[40] So he does that for several years, then seems to somehow take a break and works in a call center.

[41] But then somehow gets back into this and starts making connections for people to get their kids into schools that they want to get to.

[42] Getting into the right college will set the trajectory for the rest of your son or daughter's life.

[43] Don't leave it to chance.

[44] Let a key coach come alongside you and your family to truly unlock your student's potential.

[45] Eventually, the FBI lands on Singer's door.

[46] He looks at all this huge amount of evidence that they've got against him.

[47] He thinks about what he's going to do, and he agrees to flip.

[48] And Singer begins to help the FBI.

[49] He agrees to wear a wire.

[50] He agrees to go back to the clients that he's worked with for years and tape in excruciating detail what he's done.

[51] He agrees to call all these people he's worked with, people he's accepted bribes from, and people he's given bribes to.

[52] Some of these are parents, some of these are coaches, some of these are associates, people he's paying.

[53] off in one way or another.

[54] They're discussing extremely strange, bizarre, extraordinary measures that very, very few people could imagine ever taking in order to get their kid into school.

[55] There's sort of two different ways that he operates.

[56] The first is this athletic scheme where he amasses a number of coaches at a number of different schools, more than a dozen schools, who agree to accept his bribes and say, I want this person on my team.

[57] all these coaches get special slots for athletes.

[58] They get admitted to universities on a totally different track than anybody who's not an athlete.

[59] So these coaches are communicating with the admissions departments at these colleges.

[60] They're almost getting like a their own personal bucket of student athletes.

[61] Absolutely.

[62] That's exactly the way it works.

[63] You get to say, this is who I want on my team and the admissions office essentially agrees to go along with what you say.

[64] So he's paying off these coaches in all these different colleges.

[65] And how do the coaches pretend that someone is a legitimate athlete when they're not.

[66] And how do the parents play along with that as well?

[67] So he had a very elaborate scheme in lots of cases.

[68] One of his typical ways of operating, apparently, was to fake photos.

[69] In one case, he said, I need a picture of an Asian girl playing soccer, and we're going to Photoshop the applicant's face onto this photo.

[70] Wow.

[71] Almost every case that we know about, this person never played on the team.

[72] They would drop out as soon as they arrived on campus.

[73] In some cases, the kids didn't even know that they were expected to play on this team.

[74] They created a profile saying that this kid ran track and he gets to campus and is speaking to a college counselor.

[75] And the counselor says, oh, so I see you run track.

[76] And the kid says, what are you talking about?

[77] He didn't even know.

[78] Okay, so that's one scam, this kind of sports coaching method scam.

[79] What was the other scam that the FBI discovered?

[80] He talked about how he arranged for students to take their SAT or ACT exams at special sites where he had bribed the proctors on those tests to basically correct the student's answers.

[81] He talked about how he encouraged the parents to get their children tested for disabilities so that they could have more time to complete the exam.

[82] He talked about how he would sometimes even have a man, an adult, poses the students at the test centers that he, quote -unquote, controlled, and that adult would take the test for the kids.

[83] And this guy was so good at it, he could basically get any score that they wanted.

[84] Jenny and Katie, you've described an elaborate system of wealthy parents bribing their children's way into college.

[85] Aren't there less risky ways for rich people to get their children into college?

[86] The world of college admissions for the extremely wealthy, is really complicated.

[87] So there are three ways to get in.

[88] First, you've got the front door.

[89] There's tests, there's grades, there's your extracurricular activities, your achievement.

[90] There's also the issue of legacies.

[91] If your parent went to this college you're trying to get to, you'll probably get some extra points.

[92] If you play a sport, you might get some extra points so you can be on their team.

[93] That's the front door.

[94] And then there's the back door.

[95] There's so many legal, ways that the ultra wealthy have been gaming the system for a long time to get their kids in this school.

[96] They donate tremendous amounts of money.

[97] They help people build buildings and work on development projects.

[98] And this is also the world where you have incredibly high -end tutoring.

[99] This is not just spending a couple hours learning how to navigate an SAT.

[100] This is hundreds of thousands of dollars, many times over years, to come up with all sorts of ways to brand yourself, essentially, into something that you think will get you into the right college, whatever you consider the right college to be.

[101] So then there's this third door, what Singer referred to as a side door, which is essentially just bribing, cheating, cutting out the middleman, or cutting out the pretense of anything other than paying people off and bribery.

[102] And I think the reason why this case is so fascinating, and we're sitting here talking about it and everybody is so interested in it is the difference between these two doors, the side door and the back door.

[103] Now, if you're the FBI, that line is very clear.

[104] It's clear that it is completely illegal to simply bribe somebody to get your kid into the college of your choice.

[105] But if you're one of these parents where you're operating in a world where you know many people are paying tens of thousands of dollars or hundreds of thousands of dollars to universities, and an often successful attempt to get your kid into the college, then maybe this doesn't seem so strange.

[106] Certainly we know it's breaking the law, and certainly you can tell from the recordings that were transcribed by the prosecutors that the parents knew they were breaking the law.

[107] But they also don't act like breaking the law is a completely big deal, and they seem to operate in a parallel universe with different consequences for them.

[108] They knew that this, crossed a line.

[109] They did it anyway.

[110] The why of why they did it anyway is actually really interesting and really complicated.

[111] It's not as though if these kids went to college, their income potential was going to grow enormously.

[112] Because they're already rich.

[113] They're already wealthy.

[114] And studies have shown that people who go to colleges and are already coming in with wealth do not necessarily see a huge jump in their income over a lifetime.

[115] On the other hand, that's not true for kids who come from poorer families.

[116] There is a lot that shows, especially if you go to a highly selective college and if you're successful, there's lots of things that show your income potential goes way up.

[117] It is a path to the middle class.

[118] That's what we've always thought of college as being, a path to the middle class.

[119] But it's not clear that if you're already part of the most upper class that you need to go to some specific college to stay in that upper class.

[120] So why then?

[121] Why do these parents who can afford to participate in this kind of scam?

[122] Why do it?

[123] If there's no tangible benefit, why take that risk?

[124] I don't think it's about economics.

[125] That might be part of it or they might tell themselves that it's part of it.

[126] But it is obviously at least somewhat about status, about maybe being able to put that sticker on the back of your car that says my student goes to Yale University.

[127] Maybe it's that you want to give your kids some perfect social experience that you think they're going to have at this right school.

[128] Or maybe you just want to save your kid embarrassment.

[129] Clearly, these parents didn't have a lot of faith in their kids.

[130] And what's also really fascinating here is that it's not just Ivy League schools.

[131] Yale is, of course, the one that is sort of eye -popping, and there's Stanford, and there's all sorts of elite schools.

[132] There's also UCLA.

[133] But there's also schools like Wake Forest University and University of Texas at Austin, all schools that they might have been just fine getting into on their own and are not schools that we think of as holding a lot of cachet in these elite circles.

[134] So what was that about?

[135] Why were they so willing to spend so much money and so much effort and break the law to get into schools?

[136] We really don't know the answer to that yet.

[137] Another way to look at it from the point of view of the parents is that no matter what their motivations are, whether they be social or whether they want an education for their children that they believe is the best education that money can buy, they have this feeling that the kids face really long odds.

[138] college has never been more competitive.

[139] I think that Harvard accepted about five percent of all of the students who applied last year.

[140] And they understand that colleges are also looking for a wide array of students as well.

[141] They don't want a class just packed with all of the people who can pay full tuition, donate a million dollars to a development fund, and continue to give for the rest of their lives because they're extremely well -heeled.

[142] They're looking for something more.

[143] And they might worry that their students are not extraordinary enough to get in.

[144] And so they're going to use the money that they have to try to offset not a systemic inequity like socioeconomic inequities or racial inequities, but to offset their children's own inability to get in.

[145] A lot of it seems to be about the certainty of it, about the security.

[146] It's not a question of maybe you will or won't get into this school.

[147] It's I'm going to make sure that you have a spot at this specific school that you want to be at than I know I can get you into.

[148] And I am going to be able to breathe a sigh of relief or celebrate or congratulate you much earlier with much more confidence than I would if I had gone through the front door or even if I had gone through the back door.

[149] And where do these privileged kids who were actually implicated in this scheme?

[150] Where do they fit into all of this?

[151] I don't know how much of school I'm going to attend, but I'm going to go in and talk to my deans and everyone and hope that I can try and balance it all.

[152] But I do want the experience of like game days, partying.

[153] I don't really care about school.

[154] So the kids whose parents participated in this scheme are fascinating.

[155] It is clear that some of them knew what was going on, but many of them didn't.

[156] Many of them are probably waking up this week stunned to learn the great lengths that their parents not only went through to cheat on their behalf, but the great lengths they went through to hide it from them.

[157] The parents worked so hard to keep their children from knowing what was going on.

[158] And this creates a whole other layer of privilege that we see in education, that we see in business, that we see that these adult parents certainly had in spades.

[159] This idea that if you do not know all of the winds at your back pushing you forward, helping you along, you will believe that you deserve everything that you got.

[160] They've been operating under the assumption that they earned their spot.

[161] Right.

[162] They deserve it.

[163] And I think this is forcing us to have a conversation to think about what is deserving it really mean.

[164] What this has done is really laid bare for all of us to see in plain view how unequal the system truly is.

[165] that if you have enough money, you can buy your way in.

[166] But at the same time, there are thousands of students who are taking out massive loans to come in and are desperate to get into higher education, which our country has long believed is the way to get into the middle and upper class.

[167] It's supposed to be the system based on your academic merit that's going to give you a path to get from wherever you started from to where you want to be.

[168] But what we've seen is that's not true.

[169] If you believe that education and that a college education specifically is the great equalizer or can be the great equalizer of our country, what this shows you is that that system is completely broken.

[170] It's difficult to think of a scenario that speaks more clearly to the idea of inequity.

[171] What this really shows is that there's all sorts of ways people have been using money and power and influence in this system for years that is completely legal and completely accepted and is perpetuated every single admission cycle.

[172] Jenny Medina, Katie Benner, thank you both very much.

[173] Thank you.

[174] Thank you.

[175] Since the FBI revealed the bribery scheme on Tuesday, at least three college coaches from Stanford, the University of Texas, and the University of Southern California, have been either fired or placed on leave.

[176] Two of the most prominent parents in the case, the chairman of a major law firm and a partner at a private equity company, have also been placed on leave.

[177] The fate of the students involved in the scheme remains unclear.

[178] On Wednesday, the University of Southern California said it would investigate any current students connected to the bribery and reject any future applicants who benefited from it.

[179] We'll be right back.

[180] Here's what else you need to know today.

[181] We're going to be issuing an emergency order of prohibition to ground all flights of the 737 max 8 and the 737 max 9 and planes associated with that line.

[182] On Wednesday, President Trump banned the use of a popular new line.

[183] of Boeing 737 jetliners after U .S. regulators discover similarities between two recent crashes in Indonesia and Ethiopia.

[184] Any plane currently in the air will go to its destination and thereafter be grounded until further notice.

[185] The similarities included the plane's up and down movements in the final moments of flight and reports from the pilots of problems with the plane's flight control system.

[186] The Trump administration had declined to ground the planes for several days, insisting they were safe to fly, even after 42 other countries had pulled them from use.

[187] And one week after the president's former campaign chairman, Paul Manafort, was sentenced to nearly four years in prison for tax evasion and bank fraud.

[188] A second federal judge on Wednesday sentenced him to an additional three and a half years on charges of conspiracy, bringing his total sentence to more than that.

[189] seven years.

[190] I think the judge showed that she is incredibly hostile for this matter for it and exhibited a level of callousness that I've not seen in a white -collar case in over 15 years of prosecution.

[191] The judge, Amy Berman Jackson, told the court, quote, it is hard to overstate the number of lies and the amount of fraud and the amount of money involved.

[192] There is no question that this defendant knew better and he knew what he was doing.

[193] A few hours later, a separate state court in New York charged Manafort with dozens of felonies, including mortgage fraud, in an attempt to ensure that Manafort faces prison time, even if he is pardoned by the president, whose powers of clemency do not extend to state -level crimes.

[194] That's it for the dayline.

[195] I'm Michael Barbaro.

[196] See you tomorrow.