A Palo Alto couple linked to the college admissions cheating scandal were charged with money laundering on Tuesday—on top of their previous mail and wire fraud charges for allegedly scheming to cheat on their son’s SAT last year.
Amy and Gregory Colburn were previously accused of paying $25,000 for a proctor to secretly correct their son’s SAT in March 2018. They are just two of 33 parents named in an indictment stemming from “Operation Varsity Blues,” which uncovered a scheme that enabled parents to raise their children’s test scores or have their children recruited as athletes to secure a spot at a certain college. The scheme was primarily ran out of William Singer’s fake charity, Key Worldwide. Singer has pleaded guilty to four charges.
The Colburns allegedly took it one step further: They are accused of paying Key Worldwide more than $24,443.50 in stock in December 2017 and obtaining a letter from the bogus charity claiming the stock was a tax-deductible donation—which meant “no goods or services were exchanged.” Gregory Colburn then allegedly issued an additional $547.45 donation to Key Worldwide on day later, increasing his total payments to Singer to $24,990.95.
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