https://www.msn.com/en-us/news/crime/two-more-parents-are-indicted-in-college-admissions-scandal/ar-BBVgaUM?ocid=spartanntp

Palo Alto couple faces money-laundering charge in college-admissions scam Amy and Gregory Colburn allegedly funneled $25k into a charitable foundation purporting to help underprivileged children

A doctor and his wife accused in a college admissions bribery scheme face an additional felony charge, conspiracy to commit money laundering, according to a new indictment.

Palo Alto residents Amy Colburn, and Dr. Gregory Colburn, are now accused of two felonies for their part in a nationwide scam to fraudulently snag coveted spots at major universities involving at least 50 people. The money-laundering accusation is in addition to a previous charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud.

The Colburns are among 33 wealthy parents who allegedly paid off a cabal that included a college-admissions coach, a test proctor, university athletics coaches and admissions officers to get their children into top universities, including Yale, Stanford and the University of Southern California. Scam ringleader William "Rick" Singer told clients that he could get their children into the highly competitive colleges through a "side door" and the bribes were a routine way...…...

The scheme allegedly faked college-admissions test scores and produced fraudulent athletics profiles to facilitate acceptance into coveted colleges in exchange for money and stocks. As much as $25 million exchanged hands, according to the U.S. Attorney's Office.

Ten of the parents have connections to Palo Alto, Menlo Park, Atherton , including the Colburns. The latest charge against the couple stems from a wiretap made by federal authorities in October 2018. The recording captured the couple allegedly agreeing to support lies told to the Internal Revenue Service by Singer. He told IRS investigators that $25k in bribes and other payments the Colburns made and funneled through his charitable organization were for donations to the Key Worldwide Foundation and would benefit needy children to have better educational opportunities.

Gregory Colburn allegedly transferred $24k in stock to the foundation to facilitate the cheating scheme for his son in 2017. The foundation then issued a letter to Colburn falsely indicating that "no goods or services were exchanged" for his donation. Colburn issued a check to the foundation for $547.45 on Dec. 30 and wrote "charitable donation" in the memo, according to the indictment.

Singer called the Colburns from Boston. He told Amy Colburn the IRS had asked him about the payments for her son's 2018 SAT test in southern California where Singer sent his clients' children to cheat on the college-admissions tests.

"OK, is that a problem?" Amy Colburn allegedly replied. Singer said that he was not going to mention to the IRS that Mark Riddell, a Florida man Singer had brought in to "proctor" the exams, had taken the test for their son. "Mmm-hmmm," Amy Colburn allegedly said. Singer said he told the IRS that her payment "went to the foundation to help underserved kids." "OK," Amy Colburn responded. Singer also spoke to Gregory Colburn during that same phone call. He said that he was not telling the IRS that Riddell took the test for his son at the West Hollywood Test Center.

"And just in case they were to call you, I just wanted to -- because I've already told them that, you know, this -- essentially this payment was made to our foundation in lieu of, but we both know that, Mark took the test for (your son). But I just wanted to make sure that we don't -- we're all on the same page," Singer said.

Gregory Colburn allegedly replied, "Right. It was to help underserved kids ... Got it. No problem." Riddell and Igor Dvorskiy, owner of the West Hollywood center where students took the tests, each received $20,000 each from Singer for their work regarding the tests for the Colburns' child and another student who took the exam at the same time.

The Colburns' son's score was 1190 out of a possible 1600, which was submitted as part of his college applications to Texas Christian University, Indiana University Bloomington, the University of Oregon and the University of Arizona.

"The Colburns’ son took his SAT test with no assistance, and the the couple were unaware that his test was altered in any way," the attorneys said. "These types of heavy-handed tactics have resulted in widespread criticism against the DOJ. The government has cast its net too widely in this investigation. The Colburns have done nothing wrong and are shocked by the indictment out of Boston, where they have no ties.

Since the indictment, the Colburns' lives have been turned upside down, their attorneys said. They were arrested at their home in front of their children. The Colburns ask that members of the public respect their privacy and especially the privacy of their son, the statement said.

A conviction on each charge carries a maximum sentence of 20 years in prison and three years of supervised release, in addition to hundreds of thousands of dollars in fines associated with the scheme.

a doctor, his wife, 25k just doesnt do it for me. Why would 2 parents sacrifice themselves for 1 kid ? 25k is not alot of money for a couple of this stature. 25k would of a bought a tutor for one year perhaps. This would have ensured the student made it thru college as opposed to just getting in college.....People with this income have great schools for their kids. Student wouldnt need an SAT imposter..... This theory of bribrey doesnt make sense to me....... I cant wait for the dam to flood...…..

https://paloaltoonline.com/news/2019/03/26/palo-alto-couple-faces-money-laundering-charge-in-college-admissions-scam