Former
Pimco CEO Douglas Hodge and the lead independent director of a
Franklin Templeton mutual fund board were among the dozens charged Tuesday in a college admissions bribery scheme, according to court documents.
Federal prosecutors charged 50 people Tuesday in connection with bribing college exam administrators and varsity coaches in order to cheat test scores and get their children admitted to elite colleges. Hodge and Franklin fund board member John B. Wilson were among several defendants connected to the financial services industry. The FBI sting also captured celebrities including Felicity Huffman and Lori Loughlin.
Hodge, who served as Pimco’s CEO between early 2014 and November 2016, paid bribes to sports administrators at the University of Southern California in order to have two of his three children admitted as athletic recruits, according to a charging document.
As part of the scheme, Hodge’s daughter indicated she was co-captain of a Japanese national soccer team, while his son’s athletic profiles included fabricated tennis and football achievements, prosecutors alleged. Hodge paid $200,000 in bribes for his daughter and $250,000 for his son, according to the affidavit.
Hodge was chief operating officer and was the Tokyo-based head of Pimco’s Asia-Pacific office from 2002 to 2009.
Hodge retired from Pimco after 28 years at the Newport Beach shop in November 2017. He serves as a managing director and senior advisor after passing the CEO reigns over to Emmanuel “Manny” Roman.
Wilson, who has been a trustee of the Franklin Funds since at least 2006 and lead independent director since 2008, is also the chair of the board’s audit committee. He is also the president and founder of Hyannis Port Capital, a real estate and private equity firm in Massachusetts.
Prosecutors say he also bribed sports administrators at USC in order to have his son admitted as a water polo recruit. The board director expressed concern in an e-mail that it would “be known that [his son] is a bench warming candidate” and “a clear misfit at practice.” But a USC water polo coach who received bribes told the university’s athletics administrator that Wilson’s son “would be the fastest player on our team … this kid can fly,” according to an affidavit. The document states that Wilson paid $220,000 in bribes on behalf of his son and $1 million for his daughter.
A spokeswoman for Pimco did not respond for comment by publication.
A spokeswoman for Franklin Templeton declined to comment.
