Another college scam (not related to Singer), criminal complaint was filed Monday:
Maryland CEO paid former fencing coach $1.5 million in bribes to get his sons accepted to Harvard, feds say
Jie "Jack" Zhao, 61, and Peter Brand, 67, were arrested Monday and charged with conspiracy to commit federal programs bribery for the alleged agreement.
Zhao, of Potomac, Maryland, is the CEO of
telecom company iTalk Global Communications. He was scheduled to appear Monday in federal court in Greenbelt, Maryland.
Brand was Harvard's men's and women's fencing coach from 1999 until last year, when he was
fired by the university following an investigation spurred by reporting from
The Boston Globe on his suspiciously expensive house sale. He will appear in federal court in Boston on Monday afternoon.
The complaint alleges Zhao made a series of payments totaling $1.5 million to Brand in exchange for the coach recruiting Zhao's two sons to the fencing team, thereby facilitating their acceptance.
"Jack doesn't need to take me anywhere and his boys don't have to be great fencers," Brand allegedly told a co-conspirator in May 2012. "All I need is a good incentive to recruit them[.] You can tell him that[.]"
In February 2013, Zhao made a purported donation of $1 million to a fencing charity operated by a co-conspirator. Shortly after Zhao's older son matriculated to Harvard in fall of 2014, the conspirator's fencing charity paid $100,000 to Brand's charitable foundation.
As Brand recruited Zhao's younger son, the businessman made a series of payments to Brand or for his personal benefit. Zhao allegedly paid for Brand's car, made college tuition payments for Brand's son, paid the mortgage on Brand's house in Needham, MA, and then bought the house for well above market value.
The payments allowed Brand to buy a more expensive residence in nearby Cambridge that Zhao then paid to renovate.
The Needham house payment
drew particular attention from Harvard and federal investigators. Brand sold the home to Zhao for $989,500, according to the deed, almost twice what a tax document said it was worth. Zhao then sold the Needham property about 17 months later at a loss of over $300,000.
Following the sale of his Needham home, Brand purchased a condominium in Cambridge. Documents show the Cambridge property was originally listed for $989,000 -- just $500 less than what Zhao paid the Needham home. Brand bought the Cambridge condo for about $300,000 over the asking price.