HOLLYWOOD, CA — “Full House” actress Lori Loughlin and her husband, fashion designer Mossimo Giannulli, filed court papers Monday outlining their intent to plead not guilty in a college admissions cheating scandal. The pair were among about 14 indicted parents to plead not guilty in the case. And last week prosecutors hit them with additional charges, a strong-arm tactic that parents who agreed to guilty pleas were spared.
Loughlin, 54, and her husband, fashion designer Mossimo Giannulli, 55, were originally charged with conspiracy to commit mail fraud and honest services mail fraud for allegedly paying $500,000 to have their daughters admitted to USC by portraying them as recruits to the university’s crew team, even though neither had ever participated in the rowing sport.
Loughlin and Giannulli waived their right to appear in court for an arraignment and plead not guilty in court documents filed Monday, according to The Hollywood Reporter. The famous couple has yet to publicly address the charges.
In the new indictment announced by federal prosecutors in Boston, they face the added charge of conspiracy to commit money laundering. Prosecutors said the couple, along with the 14 other parents, allegedly conspired to launder bribes paid to admitted ringleader William Singer — a Newport Beach businessman — “by funneling them through Singer’s purported charity and his for-profit corporation.”
Loughlin and other parents now indicted on the money-laundering charge could find themselves facing heftier prison terms. Among those named in the new indictment were I-Hsin “Joey” Chen, 64, of Newport Beach; Douglas Hodge, 61, of Laguna Beach; Michelle Janavs, 48, of Newport Coast; and Homayoun Zadeh, 57, of Calabasas.
The charge of conspiracy to commit money laundering carries a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000. The fraud-conspiracy charge also carries a maximum 20-year prison term, three years of supervised release and a fine of $250,000.
Fifty people across the country, including parents and some college athletics coaches, have been implicated in the scandal, and some have already struck plea deals with prosecutors, including Golden Globe-winning actress Felicity Huffman.
Huffman admitted wrongdoing and agreed to plead guilty in a deal that is likely to mean jail time for the “Desperate Housewives” star.
Huffman, one of the most high-profile parents caught up in the scheme, will plead guilty for agreeing to pay at least $15,000 to bolster her oldest daughter’s score on the SAT exam. She is among 13 parents who have agreed to plead guilty in the scheme. Huffman has agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Defense attorney Manny Medrano told the Los Angeles Times Tuesday that based on 2019 federal sentencing guidelines, Huffman would likely face four to 10 months in prison as part of her plea deal.
The case against Loughlin and Giannulli includes emails between the couple and Singer allegedly scheming to cheat the system, according to court records.
Legal experts predicted that parents reluctant to cut deals would likely find themselves facing additional charges. Still, the likelihood of jail time may have made some the wealthy and famous defendants willing to risk a trial.
“These cases aren’t about defense, they are about mitigation,” said Neama Rahmani, a former assistant U.S. attorney told the Times. “If a defendant stays in, they are getting bad advice from their lawyers. These are bulletproof cases. As an attorney, it is about finding the best way to reach a plea with the government with a reduced sentence.”
Several coaches at local universities were arrested in connection with the alleged $25 million scheme. Federal prosecutors said the conspiracy involved wealthy parents who would pay thousands of dollars to get their children admitted to prestigious universities by passing them off as recruited athletes — regardless of their athletic ability — or by helping them cheat on college entrance exams.
Federal prosecutors said that in some cases, the ruse over fake athletic recruiting included the use of staged or faked photos of the students posing with athletic equipment or appearing to compete in sports they did not actually play.
Athletic coaches from USC, UCLA, Yale, Stanford, Wake Forest and Georgetown, among others, were implicated in the scheme, as well as parents and entrance-exam administrators.
City News Service contributed to this report.