Wealthy Parents involved in admission scams could face additional charges and fine
Federal authorities confirmed that wealthy parents took a part in the college admission scams. Some parents are already facing the possible prison time in this case. Additional criminal charges and stiff financial penalties could be implemented on them, according to the experts.
Consultant Rick Singer, who ran a tax-exempt organization, took millions of dollars from the parents. He used this money for paying coaches and other insiders for the designation of the applicants as athlete recruiters. “He was involved in cheat on entrance exam”, said prosecutors.
33 parents have been charged in this case. Lori Loughlin and Felicity Huffman, the Hollywood stars, are also among the charged parents. They did not comment on this case in front of the media. Mark Matthews, a former deputy commissioner of IRS and attorney at Caplin and Drysdale, said, “IRS was behind that money as it is known as the follow the money crowd”.
IRS, the investigator of this case along with FBI, said, “We are looking at the transactions made by the parents”. Parents are going to pay harsh penalties to the IRS, according to the experts. Lloyd Hitoshi Mayer, professor at the University of Notre Dame Law School, “Parents are going to pay at least 20% penalty for claiming the reduction of taxes which they are not supposed to claim”.
Some parents paid Singer Foundation from their own family foundations and they will pay the penalties according to the foundation laws. Meghan Biss, IRS employee, said, “IRS will determine the legitimacy of the donations and it will take the taxes back from the parents as well”. Biss is currently working in Caplin and Drysdale.
The parents who are accused in this case are more likely to pay additional penalties in the form of fine and additional charges. The investigation is under process and more truths are still be found.