A broker whose business will be acquired by Brown & Brown Inc. has pleaded guilty in connection with the Varsity Blues scandal, accused of using fraud and bribery to increase his daughter's college entrance fee.
Mark Hauser, 59, will plead guilty to a count of conspiracy to commit e-mail fraud and honest e-mail fraud services, according to a statement from 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, based in Cincinnati, on August 10.
Hauser focuses on insurance for private equity groups and their portfolio companies, including advice on mergers and acquisitions and due diligence, placement of insurance solutions for all aspects of business risks, employee advisory services and benefits for 401
The announcement said the broker would continue We will operate from its Cincinnati headquarters under James Stine's leadership.
A spokesman for Brown & Brown could not be reached for comment on whether this would affect the agreement, which was expected to be terminated in September, subject to certain closure terms.
The U.S. Attorney's Office said the government will recommend a sentence of six months in prison, one year of probation, a $ 40,000 fine and restitution.
It stated that Mr. Hauser, who is based in California, had agreed to pay Rick Singer an amount that ultimately amounted to $ 40,000 to facilitate cheating on his daughter's ACT exam, in a scheme that involved a adopted proctor who corrected his daughter's response to the test after she had completed it.
It said that Mr Hauser is the 29th parent and the 42nd person overall to plead guilty in this case.