A California businessman who tipped prosecutors off to a vast US college admissions cheating and fraud scheme was sentenced on Wednesday to one year in prison after admitting he participated in a stock fraud.
A woman walks past the New York Stock Exchange. The US economy contracted at a 32.9 percent annual rate from April through June, its worst drop on record. Photo: AFP
US District Judge Nathaniel Gorton in Boston said that under normal circumstances, Morrie Tobin, 57, would deserve eight years in prison for trying to deceive investors out of $15 million through "pump-and-dump" schemes.
But he cited Tobin's "substantial assistance" in helping authorities probe not just that fraud but also an "infamous" scheme in which wealthy parents sought to fraudulently secure their children's admission to top universities.
The scheme's mastermind, admissions consultant William "Rick" Singer, is cooperating after admitting he facilitated college entrance exam cheating and used bribery to help children gain admission to colleges as fake athletic recruits.
To date, 55 people have been charged, including actress Lori Loughlin, who is to be sentenced next week after pleading guilty. Another defendant, test administrator Niki Williams, agreed to plead guilty on Wednesday.
Tobin's lawyer, Brian Kelly, said sending him to prison sends a "terrible message" to would-be cooperating witnesses. Tobin must also pay a $100,000 fine and forfeit $4 million.
In court in 2019, assistant US attorney Eric Rosen said the probe stemmed from an investigation into a California man's stock fraud.
That man was Tobin, Kelly confirmed in court on Wednesday.