College Cheating Scandal: Northwestern Student's Parents Charged

EVANSTON, IL — The parents of a Northwestern University student have been charged as part of a nationwide college admissions cheating scandal. The freshman student and her older sister, a junior at Georgetown University, are accused of cheating on standardized tests with hand-picked proctors, according to federal charging documents and school records.

Elizabeth and Manuel Henriquez, of Atherton, California, are among dozens of parents charged with conspiracy to commit mail fraud and honest services mail fraud on behalf of their two daughters as part of what authorities said was a $25 million racketeering scheme uncovered in a investigation dubbed "Operation Varsity Blues."

According to documents unsealed Tuesday and the university directory, the future Northwestern student was flown from northern California to Houston and fed answers during her ACT test on Oct. 22, 2016, by Mark Riddell who had also "gloated" with her mother and older sister about the Northwestern student getting away with cheating on the prior year's exam.

Riddell, 36, has agreed to plead guilty and cooperate with federal investigators, according to the 204-page affidavit from an FBI agent filed in support of conspiracy, racketeering and wire fraud charges against 50 people. In Houston, he told the Northwestern freshman to answer certain questions incorrectly to hide the cheating, and she wound up scoring a 30 out of a possible 36, according to prosecutors.

The next spring, Mrs. Henriquez, 56, arranged for her younger daughter to fly to Los Angeles for a specially arranged SAT exam, where on June 2, 2017, she was also fed answers by a proctor who was paid off by the participants in the scheme, prosecutors said. They said the Northwestern student received SAT subject test scores between 720 and 770 with the help of the handpicked proctor.

Mr. Henriquez, 55, is the founder and, until this week, the chairman and CEO of the publicly traded Hercules Capital, a Palo Alto-based firm describes itself as the "largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies." In a release Wednesday morning, it said "Manuel Henriquez has voluntarily stepped aside" but would remain the board.

Prosecutors say the parents paid more than $435,000 to the central figure in the scheme, 58-year-old William Singer, owner of the Edge College & Career Network and the CEO of the Key Worldwide Foundation. According to the affidavit in support of charges, Mr. Henriquez got a discount on the test fraud by arranging for another student involved in the scam to get into Northeastern University in Boston, where he graduated and formerly sat on a university governing body.

The Henriquezes' contributions got both of their daughters into the prestigious universities with the help of fraudulently obtained test results and, in the case of their elder daughter, a spot as a tennis recruit at Georgetown University, where the coach has also been charged.

"At her best," said Laura Smith, the FBI agent and forensic accountant who filed the affidavit, "[Henriquez] appears to have ranked 207th in Northern California in the under-12 girls division, with an overall win/loss record of 2-8."

The older Henriquez daughter described herself as “very independent and not dependent on others" with "a good moral compass" in a blog post that has since been deleted, the Daily Beast reported. In a since-deleted online resume, she noted "many have said I am a rapid learner" and explained she loves to be "around others feeding off their energy to enhance my work." It said she has interned at a D.C. investment firm and was due to work this summer at another one in New York.

After surrendering to the FBI, the Henriquezes were released on $500,000 bonds ahead of their next court appearance March 29 in the Southern District of New York. Bloomberg News reported the couple looked "stunned" in court and Mr. Henriquez shook his head and looked at the floor as the judge laid out the charges against him. Their lawyer declined to comment on the allegations, which could bring a maximum penalty of up to 20 years in federal prison, according to prosecutors. Neither of their daughters has been charged with a crime.

In a statement, a Northwestern spokesperson said it may expel students who it discovers submitted false information as part of their application. While not commenting on the specifics of the Henriquez case, the spokesperson said the university was disappointed in the "undermining of the admissions process at numerous universities," according to the Daily Northwestern.

More: Affidavit from the Massachusetts Office of the U.S. Attorney

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