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U.S. college admissions scam tipster’s prison sentence reduced to 4 months in stock fraud case By Reuters


© Reuters. FILE PHOTO – Morrie Tobin, a Los Angeles financial expert, arrives at the federal courts to hear about a scheme that cheats college admissions in Boston (Massachusets), U.S.A, on August 12, 2020. REUTERS/Brian Snyder

Nate Raymond

BOSTON (Reuters). A federal judge reduced Friday’s one year sentence for a Californian businessman that allegedly lied to prosecutors about a massive U.S. college admissions scam scheme to only four months and eight months at home.

U.S. District Judge Nathaniel Gorton of Boston pointed to a law that allowed defendants to get sentence reductions for helping the government. He reduced Morrie Tobin’s prison time for deceiving investors by using “pump and dump” schemes to make $15 million.

His attorneys had asked for a delay in reporting to prison. This was based on “confidential” assistance to authorities. Tobin’s lawyer did not respond to our request for comment.

At this point, there have been 57 criminal charges related to a scheme by wealthy parents and William “Rick” Singer, an admissions specialist in California, to fraudulently obtain college placements for their children.

Operation Varsity Blues stemmed out of an unrelated stock fraud investigation into Tobin, aged 58. Prosecutors said Tobin told investigators that Rudolph Meredith was part in a bribery scheme. (NYSE:

Secretly, investigators recorded Meredith’s meeting to request $450,000 in order for Tobin to designate Meredith as Tobin’s soccer recruit.

The prosecution claimed that investigators discovered about Singer at the meeting. Meredith agreed then to record telephone calls with Singer in order to help prosecutors construct their case against him. Meredith plead guilty to the charges in 2019.

Singer was convicted in 2019 of facilitating college admissions cheating and using bribery for fake recruits.

Two of the parents are being trial, Gamal Aziz, a former Wynn Resorts Ltd (NASDAQ) Ltd executive, and John Wilson, a founder of private equity firm, Private Equity. The closing arguments will take place next week.

Gorton stated last year, Tobin would have been sentenced to eight years in prison if it weren’t for his involvement in the probe into stock fraud and the case involving college fraud.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.