On May 12, 2021, US District Judge Nathaniel M. Gorton sentenced former TPG Capital private equity executive William McGlashan Jr. to three months in prison for his part in the “Varsity Blues” college admissions scheme.
[1] In addition to the three-month term, Judge Gordon ordered McGlashan to undergo two years of supervised release, 250 hours of community service, and pay a $250,000 fine.
[2] McGlashan is the 30th parent to plead guilty in the case.
[3]
McGlashan’s Conduct
Prosecutors alleged that McGlashan conspired with William “Rick” Singer and others to commit wire fraud and honest services wire fraud by agreeing to pay $50,000—styled as a donation to Singer’s non-profit, the Key Worldwide Foundation (KWF)—to bribe a standardized test administrator to allow Mark Riddell, a test tutor, to “purport to proctor” McGlashan’s older son’s ACT exam.
[4] As result, Riddell secretly corrected McGlashan’s son’s answers to ensure he earned a near perfect score on the ACT.
[5] Those fraudulent scores were subsequently sent, via interstate wire communication, to various colleges and universities, including Northeastern University in Boston, Massachusetts.
[6] McGlashan ultimately pled guilty to aiding and abetting wire fraud and honest services fraud on February 5, 2021.
[7] As a part of McGlashan’s plea agreement, prosecutors agreed to dismiss two other charges related to bribery and fraud.
[8]
Federal Prosecutors’ Sentencing Recommendation
The government recommended that McGlashan receive a 90 day sentence, a $250,000 fine, two years of supervised release, and 250 hours of community service.
[9] Prosecutors argued that a 90 day sentence “reflect[ed] the history and characteristics” of McGlashan, including his lack of prior criminal conduct, his successful career and standing in the community, and his legitimate charitable work.
[10] Prosecutors also argued that their sentencing recommendation reflected the seriousness of McGlashan’s offense, which they described as “deliberate and shameless conduct” to ensure the success of the exam cheating for his older son, an “eagerness” to pursue the college recruitment aspect of the scheme to secure that son’s admission to USC, and a willingness to engage in exam cheating yet again on behalf of his other children.
[11]
In its sentencing memorandum, the government characterized its recommended sentence for McGlashan as “comparable” to the following individuals: David Sidoo (90 days), Devin Sloane (four months), Greg and Marcia Abbot (one month), and Agustin Huneeus (five months).
[12] The length of those sentences turned on, in relevant part, whether the defendant engaged in “exam cheating”
and the college recruitment scheme, how many times the defendant engaged in those practices, and the timing of the defendant’s plea.
[13] According to the government, McGlashan engaged in “exam cheating” and pleaded later in the process, but did not engage in the college recruitment scheme.
[14]
Conclusion
Judge Gorton ultimately accepted the government’s recommendation in its entirety, which resulted in a three-month prison term that falls in the middle range of similarly situated individuals Judge Gorton acknowledged McGlashan’s “significant” devotion of “time, money and resources towards advancing social good,” but noted that McGlashan’s conduct reflected an “incredible lack of integrity, morality and common sense.”
[15] Although McGlashan is set to serve his sentence this summer, a provision in McGlashan’s plea agreement allows him to rescind his guilty plea if he can prove on appeal that standardized tests should not be considered property under mail or wire fraud statutes.
[16]
The first Varsity Blues trial (involving defendants Amy Colburn, Gregory Colburn, Gamal Abdelaziz, I-Hsin “Joey” Chen, John Wilson, Elizabeth Kimmel, Marci Palatella, and Homayoun Zadeh) is set for trial on September 13, 2021.
[17] Steptoe will continue to monitor and provide updates regarding developments in this matter.
“Pleading Parents” Tracker
| Defendant |
Plea Date |
Sentence Court Imposed |
| Gregory Abbot |
5/22/2019 |
1 month in prison
1 year of supervised release
250 hours of community service
Fine of $45,000 |
| Marcia Abbot |
5/22/2019 |
1 month in prison
1 year of supervised release
250 hours of community service
Fine of $45,000 |
| Jeffery Bizzack |
7/24/2019 |
2 months in prison
3 years of supervised release
300 hours of community service per year of supervised release
Fine of $250,000 |
| Diane Blake |
7/14/2020 |
6 weeks in prison
2 years of supervised release
100 hours of community service
Fine of $125,000 |
| Todd Blake |
7/14/2020 |
4 months in prison
2 years of supervised release
100 hours of community service
Fine of $125,000 |
| Jane Buckingham |
5/24/2019 |
3 weeks in prison
1 year of supervised release
Fine of $40,000 |
| Gordon Caplan |
5/21/2019 |
1 month in prison
1 year of supervised release
250 hours of community service
Fine of $50,000 |
| Peter Dameris |
6/2/2020 |
1 day in prison (deemed served)
3 years of supervised release with 12 months of home confinement
Fine of $95,000 |
| Robert Flaxman |
5/24/2019 |
1 month in prison
1 year of supervised release
250 hours of community service
Fine of $50,000 |
| Mossimo Giannulli |
5/22/2020 |
5 months in prison
2 years of supervised release
Fine of $250,000
250 hours of community service |
| Mark Hauser |
9/21/2020 |
Sentencing scheduled for 5/27/2021 |
| Elizabeth Henriquez |
10/21/2019 |
7 months in prison
2 years of supervised release
Fine of $200,000
300 hours of community service |
| Manuel Henriquez |
10/21/2019 |
6 months in prison
2 years of supervised release
Fine of $200,000
200 hours of community service |
| Douglas Hodge |
10/21/2019 |
9 months in prison
2 years of supervised release
Fine of $750,000
500 hours of community service |
| Felicity Huffman |
5/13/2019 |
14 days in prison
1 year of supervised release
250 hours of community service
Fine of $30,000 |
| Agustin Huneeus Jr |
5/21/2019 |
5 months in prison
2 years of supervised release
500 hours of community service
Fine of $100,000 |
| Davina Isackson
|
5/1/2019 |
Agreed to cooperate with the government’s investigation; no sentenced imposed to date. |
| Bruce Isackson
|
5/1/2019 |
Agreed to cooperate with the government’s investigation; no sentenced imposed to date. |
| Michelle Janavs |
10/21/2019 |
5 months in prison
2 years of supervised release
Fine of $250,000 |
| Marjorie Klapper |
5/24/2019 |
3 weeks in prison
1 year of supervised release
250 hours of community service
Fine of $9,500 |
| Karen Littlefair |
1/22/2020 |
5 weeks in prison
2 years of supervised release
300 hours of community service
Fine of $209,000 |
| Lori Loughlin |
5/22/2020 |
2 months in prison
2 years of supervised release
Fine of $150,000
100 hours of community service |
| Toby MacFarlane |
6/21/2019 |
6 months in prison
1 year of supervised release
200 hours of community service
Fine of $150,000 |
| William McGlashan |
2/10/2021 |
3 months in prison
2 years of supervised release
Fine of $250,000
250 hours of community service |
| Robert Repella |
5/26/2020 |
Sentencing scheduled for 6/16/2021 |
| Peter Jan Sartorio |
5/22/2019 |
1 year of probation
250 hours of community service
Fine of $9,500 |
| Stephen Semprevivo |
5/7/2019 |
4 months in prison
2 years of supervised release
500 hours of community service
Fine of $100,000 |
| Devin Sloane |
5/13/2019 |
4 months in prison
2 years of supervised release
500 hours of community service
Fine of $95,000 |
| David Sidoo |
3/13/2020 |
90 days in prison
1 year of supervised release
Fine of $250,000 |
| Xiaoning Sui |
5/18/2020 |
Time served
Fine of $250,000
Forfeiture of $400,000 |
[1] See Brian Dowling,
'Ex-TGP Exec Gets 3 Months For 'Varsity Blues' Exam Bribe,’ Law360 (May 12, 2021, 1:39 PM).
[2] Department of Justice,
Investigations of College Admissions and Testing Bribery Scheme, (last accessed May 13, 2021).
[3]Id.
[4] Gov’t Sentencing Mem. at 1,
United States v. McGlashan, Jr., No. 19-100080-NMG (D. Mass. May. 7, 2021), ECF No. 1839.
[5] Id.
[6] Id. at 3.
[7] See McGlashan Jr. Plea Agreement at 1,
United States v. McGlashan, Jr., No. 19-10080-NMG (D. Mass. Feb. 5, 2021), ECF No. 1716.
[8] Id.
[9] Gov’t Sentencing Mem.,
McGlashan, Jr., No. 19-100080-NMG, at 7.
[10] Id. at 6.
[11] Id.
[12] Gov’t Sentencing Mem.,
McGlashan, Jr., No. 19-100080-NMG, at 5-6.
[13] Id.
[14] Id.
[15] See Brian Dowling,
'Ex-TGP Exec Gets 3 Months For 'Varsity Blues' Exam Bribe, Law360 (May 12, 2021, 1:39 PM).
[16] See McGlashan Jr. Plea Agreement,
McGlashan, Jr., No. 19-10080-NMG, at 1-2.
[17] Department of Justice,
Investigations of College Admissions and Testing Bribery Scheme, (last accessed May, 13, 2021).
