Broker pleads guilty in college entrance test scandal
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A broker whose firm will be acquired by Brown & Brown Inc. has pleaded guilty in connection with the Varsity Blues scandal, charged with using fraud and bribery to boost his daughter’s college entrance test results.
Mark Hauser, 59, will plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud, according to a statement by the U.S. Attorney’s Office in Boston on Friday.
Daytona Beach, Florida-based Brown & Brown said it had entered into an agreement to acquire the family-owned Hauser Group, which is based in Cincinnati, on Aug. 10.
Hauser focuses on insurance for private equity groups and their portfolio companies, including merger and acquisition advisory and due diligence services, placement of insurance solutions for all aspects of business risk, employee benefits advisory services and 401(k) plan compliance, according to the statement announcing the deal.
The announcement said the brokerage would continue to operate from its Cincinnati headquarters under James Stines’ leadership.
A Brown & Brown spokesman could not be reached for comment as to whether this will impact the deal, which was expected to close in September, subject to certain closing conditions.
The U.S. Attorney’s office said the government will recommend a sentence of six months in prison, one year of supervised release, a $40,000 fine and restitution.
It said Mr. Hauser, who is based in California, had agreed to pay Rick Singer an amount that ultimately totaled $40,000 to facilitate cheating on his daughter’s ACT exam, in a scheme that involved a supposed proctor who corrected his daughter’s answers on the test after she had completed it.
It said Mr. Hauser is the 29th parent and the 42nd person overall to plead guilty in this case.
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