Dozens of parents may now face steep tax penalties after they allegedly paid bribes disguised as donations in order to get their children into elite colleges like Stanford and Yale.
Prosecutors say that some wealthy parents in the scheme—which prosecutors unveiled March 12—were able to claim tax deductions for purported donations that were funneled through the Key Worldwide Foundation, a Newport Beach, Calif.-based nonprofit. The organization, which the Internal Revenue Service declared tax-exempt under code Section 501(c)(3) in or about 2013, fronted as a vehicle for the bribes to be paid out to university administrators, athletic ...
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