HOURS, SENATOR ELIZABETH WARREN IS GOING TO JOIN US LIVE ON THE
SET IN OUR 8:00 A.M. HOUR.
WE LOOK FORWARD TO THAT.
WE BEGIN WITH THIS INCREDIBLE
STORY.
STORY. >>> CHARGES IN A MULTI-MILLION
DOLLAR ENTRANCE EXAM CHEATING
SCANDAL.
SCANDAL. WERE YOU GUYS SHOCKED BY THIS?
THIS IS A SHOCKER.
SAM, YOU’RE NOT?
>> WHAT’S THE BIG DEAL?
ISN’T THIS HOW IT ALWAYS
HAPPENS?
HAPPENS? >> SAM, WE’RE NOT DOING THIS FOR
YOU.
YOU. WE’RE NOT.
WE’RE NOT. YOU WALKED RIGHT INTO THAT.
IT’S NOT HAPPENING FOR AH.
YOU HAVE TO TAKE YOUR S.A.T.s
JUST LIKE EVERYBODY ELSE.
>> WE WERE SHOCKED AT THE
BRAZENNESS OF IT, RIGHT?
WE WEREN’T SHOCKED SOMEBODY
TRIED TO CHEAT TO GET THEIR KIDS
INTO SCHOOL.
INTO SCHOOL. >> SADLY.
>> SADLY. SADLY.
SADLY. >> THE BRAZENNESS OF IT WAS
INSANE.
INSANE. PHOTO SHOPPING, HEADS ON BODIES.
>> YOU CAN PAY, THAT’S LEGAL OR
GO UNDER THE TABLE AND THAT’S
APPARENTLY NOT.
APPARENTLY NOT. THIS IS A DISTINCT FORM OF
CORRUPTION.
CORRUPTION. >> I THINK THIS IS VERY -- MAYBE
I’M NAIVE.
I’M NAIVE. NEARLY 50 PEOPLE HAVE BEEN
CHARGED, THE LARGEST COLLEGE
CHEATING SCAM EVER TO BE MADE BY
THE DEPARTMENT OF JUSTICE A $25
MILLION SCHEME ALLEGEDLY FUNDED
BY WEALTHY PARENTS INCLUDING TWO
HOLLYWOOD ACTRESSES IN AN
ATTEMPT TO GET THEIR CHILDREN
INTO ELITE COLLEGES LIKE YALE,
GEORGETOWN AND THE UNIVERSITY OF
SOUTHERN CALIFORNIA.
SOUTHERN CALIFORNIA. THEY ARE ACCUSED OF PAYING
BRIBES RANGING FROM $200,000 TO
UPWARDS OF HELLO, $6.5 MILLION
TO COLLEGE PREP CONSULTANT
WILLIAM SINGER.
WILLIAM SINGER. ACCORDING TO PROSECUTORS SINGER
THEN FACILITATED WAYS -- THIS IS
WHERE I’M STUNNED -- TO HELP
STUDENTS CHEAT ON ENTRANCE EXAMS
AND BE RECRUITED AS ATHLETES
REGARDLESS OF THEIR ATHLETIC
ABILITIES.
ABILITIES. HOW DID THE KIDS NOT KNOW THIS
WAS HAPPENING?
WAS HAPPENING? ARE THEY BEING BROUGHT UP TO
CHEAT.
CHEAT. THIS IS HORRENDOUS.
THEY MUST HAVE KNOWN IN SOME
CASES.
CASES. >> THEY ARE BEING BROUGHT UP TO
FOLLOW THEIR PARENTS TO SOME
EXTENT.
EXTENT. IN SOME CASES THE PARENTS DID
NOT WANT THEM TO KNOW WHAT WAS
GOING ON.
GOING ON. IT WAS PROBABLY A WEIRD MOMENT
WHEN THE SOCCER COACH SHOWED UP,
HEY, WE’RE READY FOR YOU TO JOIN
THE TEAM.
THE TEAM. THEN THE KID WAS LIKE, I DON’T
PLAY SOCCER.
PLAY SOCCER. >> THAT’S THE THING.
HOW COULD THEY GET INTO THE
SCHOOL AS AN ATHLETE AND NOT
SHOW UP FOR PRACTICE.
>> IN SOME CASES THE COACHES
WERE IN ON THE ACTION AND BEING
PAID SAYING THIS PERSON IS A
RECRUIT.
RECRUIT. THIS RIPPLES DOWN INTO THE
UNIVERSITY SYSTEM AS WELL.
NOT JUST THE TOP LINE STUFF
AMONG PARENTS AND CONSULTANTS,
ALSO HOW CERTAINLY UNIVERSITY
STAFF AND PERSONNEL --
>> CHOSE TO PERSONALLY -- IN
SOME CASES SINGER ALLEGEDLY HAD
AN IMPOSTER TAKE S.A.T. TESTS
FOR STUDENTS AND OTHERS
PHOTOSHOPPED FACES OF APPLICANTS
ON TO PHOTOS ON THE INTERNET OF
ATHLETES TO BOLSTER THEIR
ATHLETIC CREDENTIALS.
ATHLETIC CREDENTIALS. SINGER PLEADED GUILTY TO A LIST
OF CHARGES INCLUDING OBSTRUCTION
OF JUSTICE AND MONEY LAUNDERING
AFTER AGREE TOGETHER WEAR A WIRE
AND COOPERATE WITH THE FBI.
AMONG THE HIGH PROFILE PEOPLE,
ACTRESS FELICITY HUFFMAN PAID
$15,000 TO HAVE HER DAUGHTER GET
MORE TIME ON THE COLLEGE
ENTRANCE EXAM AND BOOST HER
SCORES ON ANOTHER.
SHE WAS RELEASED ON $250,000
BAIL YESTERDAY.
BAIL YESTERDAY. ACTRESS LORI LAUGHLIN, SHE AND
HER HUSBAND ALLEGEDLY AGREED TO
PAY BRIBES UP TO HALF A MILLION
DOLLARS TO BOOST THEIR TWO
DAUGHTERS’ CHANCES TO GET INTO
USC.
USC. INVESTIGATORS SAY THE COLLEGES
THEMSELVES ARE NOT A TARGET OF
THE ONGOING INVESTIGATION AND NO
STUDENTS CHARGED.
STUDENTS CHARGED. THE WIDE RANGING SCHEME OPERATED
FROM 2011 UP UNTIL LAST MONTH.
WILLIE, I FIND THIS INCREDIBLE
AND THINK IT’S AN INCREDIBLE
RELIEF FROM TRUMP NEWS AND
POLITICAL NEWS, IT’S STUNNING
THE LENGTH PARENTS WILL GO AND
WHAT’S THE MESSAGE PARENTS WILL
GO AND NOT A GOOD ONE.
>> NO.
>> NO. OF COURSE NOT.
IT IS STUNNING THAT PARENTS
CHEAT TO GET YOUR KIDS IN SCHOOL
AND IN THE NEXT TAX BRACKET,
WE’VE ALL HEARD THOSE STORIES,
BUT THIS IS SUCH AN ELABORATE
SCHEME AND WE WONDER HOW THAT
WORKS.
WORKS. LET’S ASK THAT QUESTION.
TOM, LET ME START WITH YOU,
WILLIAM SINGER, THIS IS THE GUY
MIKA WAS JUST DESCRIBING AT THE
TOP OF THE CHAIN HERE, A COLLEGE
COUNSELOR, A FOR-PROFIT COMPANY
HE RUNS.
HE RUNS. COLLEGE PREP GETS YOU READY FOR
THE S.A.T., THINGS LIKE THAT.
HOW DOES IT WORK?
WALK US FROM HIM TO THE COLLEGES
THEMSELVES.
THEMSELVES. >> THERE’S A COUPLE DIFFERENT
TIERS AND COUPLE DIFFERENT WAYS
THEY DID IT.
THE FIRST WAY, LOOK, WE HAVE
COACHES WE’RE ACTUALLY BRIBING.
A TENNIS COACH ON THE TAKE FOR
$2.7 MILLION OVER THE COURSE OF
THIS SCHEME.
THIS SCHEME. WHAT THEY WILL SAY IS IF YOU CAN
FIND A WAY FOR YOUR KID TO BE
GREAT AT TENNIS OR GREAT AT CREW
OR GREAT AT SOCCER, WE CAN FIND
A WAY FOR THEM TO GET THEM IN OR
AT LEAST RECOMMENDED TO GET THEM
ON THAT TEAM AND THEY WOULDN’T
SHOW UP OR DROP OUT PLAYING FOR
THAT TEAM.
THAT TEAM. THAT HAPPENS SOMETIMES IN THE
NATURAL COURSE OF RECRUITING FOR
ATHLETES.
ATHLETES. IT’S NOT A HUGE RED FLAG, I
PARTICULARLY IN LESSER TIER
PROGRAMS.
PROGRAMS. WE’LL COME IN UNDER THAT AND IN
ADDITION WE’LL HELP THEM TAKE
THE TEST OR TAKE THE TEST FOR
THEM OR GIVE THEM UNLIMITED
TIME.
TIME. THERE ARE PERFECTLY GOOD MENTAL
REASONS TO GET ADDITIONAL TIME
ON A TEST.
WHEN YOU HAVE SOMEBODY BEING
BRIBED TO GIVE THAT STUDENT MORE
TIME, THAT’S AN ENTIRELY
DIFFERENT STORY.
DIFFERENT STORY. >> IN SOME CASES -- SORRY TO
INTERRUPT -- YOU HAD PARENTS
INVENTING PROBLEMS THE KIDS HAD,
WHETHER EMOTIONAL OR STRESS,
GOING A PSYCHIATRIST AND GETTING
A FAKE DIAGNOSIS TO GET MORE
TIME TO TAKE THE TEST.
>> ALL OF THAT TIES UP TO THIS
NOVEL LEGAL THEORY WHERE YOU
HAVE INSTITUTIONS RECEIVING MORE
THAN $10,000 IN FEDERAL FUNDS.
AT THAT POINT, THE JUSTICE
DEPARTMENT SAID, YOU KNOW WHAT,
IF YOU’RE GOING TO CHEAT WHEN
WE’RE INVOLVED WITH TAXPAYER
MONEY YOU’VE JUST OPENED THE
DOOR FOR US TO INVESTIGATE.
WHAT’S GOING ON WITH WILLIAM
SINGER AND HIM PLEADING GUILTY,
NOT ONLY DO YOU HAVE PRESUMABLY
THE PAYMENTS HERE, RIGHT, YOU
HAVE PAYMENTS FROM THE HIGH
PROFILE HOLLYWOOD TYPES, CEOs OF
LAW FIRMS AND PAYMENTS GOING IN.
AND E-MAIL EXCHANGES FROM LORI
LOUGHLIN AND HER HUSBAND, WE
WILL GET A PICTURE OF HER ON A
ROWING MACHINE.
ROWING MACHINE. AFTER THEY ARREST SINGER AND
INVOLVE HIM IN COOPERATING,
COOPERATING WITNESS NUMBER ONE
IN THE COURT DOCUMENTS, YOU HAVE
HIM MAKING CALLS BACK TO THE
PEOPLE AND SAYING, THE IRS MAY
AUDIT THIS.
AUDIT THIS. REMEMBER, IF THEY CALL YOU, IT’S
A DONATION, RIGHT, DON’T MENTION
THE THING WE DID FOR YOUR
DAUGHTER OR SON OR CHILD.
IT IS STRONG EVIDENCE IF IT GOES
TO TRIAL.
TO TRIAL. >> WHAT IS THE LEGAL EXPOSURE.
WE KNOW WILLIAM SINGER’S LEGAL
EXPOSURE, FOR SOME OF THE
PARENTS AND CELEBRITY NAMES WE
HEARD HERE?
HEARD HERE? >> MAIL WIRE FRAUD CARRIES A
STATUTORY MAXIMUM OF 20 YEARS.
THAT’S NOT LIKELY TO BE AN
ACTUAL SENTENCE UNDER THE
GUIDELINES BECAUSE PRESUMABLY
WE’RE DEALING WITH MOSTLY FIRST
TIME OFFENDERS HERE.
THE MAIL AND WIRE FRAUD IS OVER
100 YEARS OLD DESIGNED TO AVOID
CITY SLICKERS TO DEPRIVE COUNTRY
FOLKS OF THEIR PROPERTY AND
SERVICES.
SERVICES. IN MODERN TIMES THIS IS AN
APPLICATION OF THAT SAME LAW TO
NOT DEPRIVE THE UNIVERSITY OF
ITS PROPERTY BUT ITS GOOD WILL,
SERVICES, HONEST ADMISSIONS
PROCESS.
PROCESS. IT’S AN INTERESTING APPLICATION
OF MAIL AND WIRE FRAUD STATUTES
TO THESE PARENTS WHO JUST
THOUGHT THEY WERE PAYING A
LITTLE EXTRA TO GET THEIR KIDS
INTO COLLEGE.
INTO COLLEGE. THERE’S THE QUESTION OF ALL THE
KIDS THAT DIDN’T GET IN THESE
SCHOOLS BECAUSE THESE KIDS DID
GET IN, TAKING UP THE SPOT.
ON THE COACH SIDE, I’M SO
FASCINATED.
FASCINATED. A THOUSAND QUESTIONS.
YOU TALKED ABOUT THE SOCCER
COACH AT YALE WHO MADE $2.7
MILLION.
MILLION. WHAT IS THAT FIRST ASK LIKE FROM
SINGER?
SINGER? HE CALLS THE COACH, KNOWS THE
COACH, HEY, I HAVE AN IDEA FOR
YOU, YOU CAN MAKE A COUPLE BUCKS
DOING THIS.
DOING THIS. THAT’S A PRETTY RISKY THING TO
ASK SOMEBODY WHO CAN CALL THE
AUTHORITIES AND SAY THERE’S
SOMETHING WRONG GOING ON HERE.
HOW DOES IT START?
>> YOU TOUCHED ON SOMETHING
IMPORTANT HERE.
IMPORTANT HERE. THIS IS AN ONGOING
INVESTIGATION.
INVESTIGATION. YESTERDAY, WE GOT A LITTLE BIT
OF WINDOW INSIDE OF THIS.
A HUGE WINDOW, FRANKLY, BARN
DOOR TO LOOK INSIDE AND SEE HOW
THIS SCHEME WAS PUT TOGETHER.
THE SPECIFIC NATURE AS FAR AS
HOW THIS ALL CAME TOGETHER, HOW
DO YOU KNOW WHO TO APPROACH,
WHICH COACHES YOU APPROACH?
IT WENT COAST-TO-COAST, USC AND
STANFORD AND SOME SCHOOLS
INVOLVED IN THIS.
HOW DID HE KNOW WHO TO GO TO AND
WHO TO PICK, SOME QUESTIONS WE
WANT ANSWERS TO.
ONCE IT WAS ESTABLISHED, ONCE
THESE COACHES WERE ON THE TAKE,
IT WAS, WHERE DOES YOUR KID WANT
TO GO TO SCHOOL?
I HAVE AN IDEA.
OH, THEY PLAYED A LITTLE BIT OF
SOCCER, WE CAN PHOTOSHOP A
PICTURE.
PICTURE. IT COMES TOGETHER AND YOU HAVE
KEY PEOPLE IN RIGHT PLACES AND
BECOMES A RACKETEERING
CONSPIRACY AND YOU HAVE AN
OVERARCHING PLAN HERE AND ONE OF
THE REASONS THEY PUT THIS
TOGETHER AND PUT THE HEAT ON
THOSE INVOLVED IN THIS BECAUSE
IT WAS SO LAID OUT OF WHO TO GO
TO, WHO TO PAY AND HOW MUCH.
>> WHEN THE KID GETS TO YALE AND
DOESN’T KNOW HOW TO PLAY SOCCER,
FOR EXAMPLE, THE KID GETS TO USC
AND NEVER SAT IN A BOAT BEFORE
TO ROW, WHAT HAPPENS?
>> APPARENTLY, THAT WAS IT.
IN ONE SPECIFIC INSTANCE, ONE OR
TWO DAYS THEY WOULD PRACTICE
WITH THE TEAM AND APPEAR THEY
WOULD NOT BE THE PLAYER THEY
WERE SUPPOSED TO BE OR PLAYER AT
ALL AND IT’S OVER.
THIS DOES SOMETIMES HAPPEN IN
SPORTS, THEY GET RECRUITED AND
GO TO SCHOOLS AND JUST LOSE IT.
I HAD FRIENDS THAT GOT RECRUITED
AND GO TO SCHOOLS AND DIDN’T
WORK OUT.
WORK OUT. >> AT LEAST THEY PLAYED BEFORE.
>> THEY’VE PLAYED BEFORE AND
SEEN -- ACTUALLY ROWED BEFORE,