CNN The former CEO of one of the world's largest investment management companies was sentenced Friday to nine months in prison for using fraud and bribes to try to get five of his children into exclusive colleges as fake athletic recruits, the US District Attorney's Office in Massachusetts said.
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Pimco ex-CEO sentenced to prison in U.S. college admissions scam: prosecutor
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California's early response helped to flatten the curve. Prosecutors had asked that he be sentenced to 24 months in prison. The nine-month sentence is the longest of any parent charged in the case, surpassing the six-month sentence given in November to Toby MacFarlanewho also pleaded guilty. By comparison, actress Felicity Huffman was sentenced to just two weeks in prison for her admitted role in the scam.
Two of Hodge's children were accepted to Georgetown University as false tennis recruits, two children were accepted to the University of Southern California as a false soccer recruit and a false football recruit, and Hodge attempted to use bribes to get a fifth child into Loyola Marymount University, according to prosecutors. Hodge also lied to the IRS by deducting these bribe payments from his income taxes as purported charitable donations, prosecutors said in a sentencing memo.
Hodge initially fought the charges in the case, but in October he agreed to plead guilty to conspiracy to commit mail and wire fraud and money laundering conspiracy. His attorneys asked for a sentence at the low end of the sentencing guidelines range, comparable to other parents who received sentences measured in weeks.
Hodge spent 28 years at Pimco, one of the largest money managers in the world, and served at least two as CEO. He left in Singer, the mastermind of the sprawling scamhas pleaded guilty to racketeering conspiracy and other charges. According to the criminal complaint released last year, Singer forwarded to Hodge two falsified athletic profiles for one of Hodge's sons. One of the profiles portrayed him as a star football player and the other portrayed him as a star tennis player.
Here's how the college admissions scam allegedly worked. Admissions just needs something to work with to show he is an athlete," Singer wrote in an email, according to the complaint. His son was accepted to USC as a football recruit, but he did not actually join the team, the complaint says. In a November 30 recorded phone call made at the direction of investigators, Singer and Hodge agreed to lie to the IRS to cover up their crimes, prosecutors said.
I'm not going to-- I'm not-- I'm not going off script here," Hodge said in the call, federal records show.The former head of asset management firm Pimco was sentenced on Friday to nine months in prison for his part in a scheme in which privileged parents paid bribes to get their children into U. Attorney Andrew Lelling said in an email.
The prison term imposed by U. District Court Judge Nathaniel Gorton in Boston was less than the two years prosecutors had sought, but the longest of the 15 defendants who have admitted guilt and been sentenced since the nationwide cheating scandal came to light last March.
Prosecutors called Hodge, 62, among "the most culpable" of 35 parents charged. Unlike 14 other defendants who received prison terms ranging from one day to six months, prosecutors said Hodge and three others who entered guilty pleas in October deserve stiffer sentences.
He tried and failed to offer bribes to get a fifth child into Loyola Marymount University, they said. In all, 53 people have been charged in the college admissions scandal, including "Desperate Housewives" star Felicity Huffman and "Full House" actress Lori Loughlin.
Huffman pleaded guilty and served less than two weeks in prison, while Loughlin pleaded not guilty. The case revolves around consultant William "Rick" Singer, who admitted in March that he facilitated cheating on college entrance exams and bribed sports coaches to present his clients' children as fake athletic recruits.
Hodge had said that Singer falsely told him his money would go toward university programs and underprivileged student athletes, but admitted that he failed to pull out of the scheme once he learned of Singer's deception.
Hodge also insisted, contrary to a prosecution claim, that he never involved his children in the scheme. Hodge's lawyers, citing his philanthropy and devotion to his children, had asked the judge to consider splitting incarceration with home detention. Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services. All Rights Reserved. Data also provided by. Skip Navigation.
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They said Hodge was also working on getting a fifth child admitted to an elite school — a charge his lawyers dispute. Six more parents have pleaded guilty and await sentencing.
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The news and stories that matters, delivered weekday mornings. Corky Siemaszko.PIMCO specializes in fixed income securities. It manages the internationally known Total Return Fund. The firm has since expanded to derivatives, mortgage-based securities, emerging markets, and other sectors of the global fixed income market.
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It has grown to be one of the largest asset management firms in the world. PIMCO's investment process integrates insights from its Cyclical Forums, which anticipate market and economic trends over a 6- to month period, and the annual Secular Forum, which projects trends over a 3- to 5-year period.
The company says it believes that an informed macroeconomic outlook—over long- and short-term horizons—is key to identifying opportunities and potential risks. The company's Total Return Fund seeks to maximize capital while preserving capital.
Former Pimco CEO sentenced to nine months in prison for US college admissions scam
The fund also has a flexibility that helps respond to changing economic conditions. The fund pays a monthly dividend and covers the U. The company boasts more than global investment professionals and portfolio managers.
The company partners with different institutions, from corporations, central banksprivate and public pension funds, endowmentsand foundations, as well as retirement plans. Portfolio Management. Investing Essentials. Company Profiles. Top Stocks. Your Money. Personal Finance. Your Practice. Popular Courses. Business Company Profiles. Compare Accounts.
The offers that appear in this table are from partnerships from which Investopedia receives compensation. Money Management Definition Money management is the process of budgeting, saving, investing, spending or otherwise overseeing the capital usage of an individual or group. Mutual Fund Definition A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is overseen by a professional money manager.
What Is a Money Manager?District Judge Nathaniel Gorton in Boston federal court. The U. Attorney's Office of the District of Massachusetts announced Hodge's plea in a tweet. Hodge, of Laguna Beach, California, had pleaded not guilty to charges in March. The firm is based in Newport Beach, California. Hodge's attorney, Miranda Hooker, declined to comment. More: Coaches in college admissions scam call charges an 'unprecedented' overreach of mafia law.
The latter charge was tacked on to parents who turned down plea deals with prosecutors earlier this year. The transaction occurred inprosecutors say. Hodge's relationship with Singer went back as early asaccording to documents in the "Varsity Blues case. Prosecutors say Singer and Hodge discussed securing the admissions of another of his children through bribery as well.
More: Felicity Huffman reports to prison to begin serving time in college admissions scandal. The Wall Street Journal reported that Singer gave presentations at Pimco's offices, as recently as Ten defendants who have pleaded guilty, including nine parents, have been sentenced for their crimes in the admissions scheme. Only one of the parents has avoided prison. Actress Felicity Huffman reported to a federal prison in California Tuesday to begin serving a day sentence. The navigation could not be loaded.In addition to his prison term, U.Pimco CEO Roman on Brexit, Trade Wars and the Outlook for the Global Economy
District Judge Nathaniel M. From the day he surrendered to authorities last March, Hodge, a resident of Laguna Beach, was among the highest-profile names in a scandal headlined with them. He rose to the head of Pimco, the bond management company based in Newport Beach, before retiring from the post of chief executive in Prosecutors from the U. Gorton handed down in November what was previously the longest sentence in the case, a six-month term, to Toby Macfarlane.
The Del Mar title insurance executive is incarcerated in Tucson scheduled to be released in June, according to Bureau of Prison records. Hodge pleaded guilty in October to conspiring to commit fraud and money laundering. Along with three other parents, he reversed his not-guilty plea after prosecutors warned of a new indictment carrying a bribery charge.
Eleven parents — a group that includes the actress Lori Loughlin and her husband, J. Mossimo Giannulli — balked at the threat, maintained their not-guilty pleas and were indicted on a bribery charge. Fifteen parents have pleaded not guilty; 21 have admitted their guilt or said they plan to do so. In court papers and a letter to the judge, Hodge described how he met Singer and, over the next decade, became one of his most frequent and lucrative clients.
Justin D. Hodge vehemently disputed this. Get up to speed with our Essential California newsletter, sent six days a week. Hot Property. About Us. Brand Publishing. Times News Platforms. Times Store. Facebook Twitter Show more sharing options Share Close extra sharing options.Reuters - The former head of asset management firm Pimco was sentenced on Friday to nine months in prison for his part in a scheme in which privileged parents paid bribes to get their children into U.
Attorney Andrew Lelling said in an email. The prison term imposed by U. District Court Judge Nathaniel Gorton in Boston was less than the two years prosecutors had sought, but the longest of the 15 defendants who have admitted guilt and been sentenced since the nationwide cheating scandal came to light last March. Unlike 14 other defendants who received prison terms ranging from one day to six months, prosecutors said Hodge and three others who entered guilty pleas in October deserve stiffer sentences.
He tried and failed to offer bribes to get a fifth child into Loyola Marymount University, they said. Huffman pleaded guilty and served less than two weeks in prison, while Loughlin pleaded not guilty. Hodge also insisted, contrary to a prosecution claim, that he never involved his children in the scheme.
Discover Thomson Reuters. Directory of sites. United States. Peter Szekely. Douglas Hodge, the former chief executive of the investment firm Pimco, leaves the federal courthouse after being sentenced in connection with a nationwide college admissions cheating scheme in Boston, Massachusetts, U.