Ex-Pimco CEO Guilty In College Admissions Scandal

LOS ANGELES, CA — A former CEO of a global investment giant became one of the most powerful parents taken down by the college admissions scandal Monday. Douglas Hodge, the former chief executive Pacific Investment Management Co, changed his plea to guilty in Boston Monday for spending hundreds of thousands of dollars to get his children into USC and Georgetown as fake athletic recruits.

One of about 19 parents to hold out and plead not guilty when many others cut deals back in April, Hodge faced a stiffer set of charges including conspiracy to commit fraud and money laundering in connection with the college admissions scandal. In federal court in Boston on Monday, Hodge, 61, changed his plea to guilty, admitting to conspiracy to commit mail and wire fraud and honest- services mail and wire fraud as well as to money-laundering conspiracy. The conviction could take Hodge from the pinnacle of the financial industry to prison inmate.

His sentencing is scheduled for Jan. 22.

Hodge, who once led the giant bond manager PIMCo., admitted to bribing sports coaches at the University of Southern California and Georgetown University. He is one of 35 parents charged in the nationwide scandal and among the first of the holdouts to change his plea to guilty after being slammed with additional charges.

Among the other holdouts is "Full House" actress Lori Loughlin and her husband fashion designer Mossimo Giannulli. Like Hodge, they were slammed with additional charges in the college admissions cheating scandal a day after the couple failed to join other parents in agreeing to plead guilty. The strong-arm prosecutorial tactics came as many parents were being pressured to cut deals. Golden Globe-winning actress Felicity Huffman pleaded guilty early on and began a two-week prison sentence last week.

In a prepared statement, Hodge said he took "full and complete responsibility" for his crimes and apologized to his family and "deserving college students who may have been adversely impacted by this process."

"I acted out of love for my children," he said, "but I know that this explanation for my actions is not an excuse."

Hodge paid Newport Beach businessman William "Rick" Singer $200,000 to misrepresent his daughter to USC as a soccer standout, co-captain of "a Japanese national soccer team" and an "All-American midfielder" which helped secure her admission to the school in 2013 as a recruited athlete, according to charging documents filed in federal court.

Singer wired $100,000 to two USC soccer coaches, Ali Khosroshahin and Laura Janke, who were complicit in the scheme, according to an indictment returned by a grand jury in April. Both coaches pleaded guilty to racketeering conspiracy and are cooperating with prosecutors. In 2014, Hodge paid another $325,000 to ensure his son was admitted to USC as a bogus football player, prosecutors said.

City News Service contributed to this report.