California Executive Mark Hauser Charged in College Admissions Case

(STL.News) – A California insurance and private equity executive has agreed to plead guilty to charges in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.

Mark Hauser, 59, of Los Angeles, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud.  A plea hearing has not yet been scheduled by the Court.

According to the terms of Hauser’s plea agreement, the government will recommend a sentence of six months in prison, one year of supervised release, a fine of $40,000 and restitution.  Hauser is the 29th parent to plead guilty and the 42nd person overall to plead guilty in this case.

As set forth in the charging document, Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam.  As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam, and purported to proctor the test.  Instead, Riddell corrected the answers on the exam after she completed it.  Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur.  Singer also paid Riddell $10,000 for his role in the scheme.

Singer, Riddell and Fox have previously pleaded guilty and are cooperating with the government’s investigation.  Williams has agreed to plead guilty.  The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.