Lori's Legal Troubles: Breaking Laws And Consequences

Actress Lori Loughlin and her husband, fashion designer Mossimo Giannulli, were charged with conspiracy to commit money laundering and mail fraud, also known as Operation Varsity Blues. The couple allegedly paid $500,000 in bribes to have their daughters accepted to the University of Southern California as crew recruits, despite neither daughter participating in the sport. Loughlin and Giannulli pleaded not guilty, claiming they were unaware that their actions were illegal. However, they were found guilty and sentenced to prison terms, with Loughlin serving two months and Giannulli serving five months.

Lori Loughlin pleaded not guilty to charges of conspiracy to commit mail fraud

In 2019, Lori Loughlin and her husband, Mossimo Giannulli, were accused of bribing the University of Southern California to accept their daughters as crew recruits, despite neither of them participating in the sport. Loughlin and Giannulli allegedly paid $500,000 to the scheme's mastermind, Rick Singer, to have their daughters pose as athletes. They were also accused of bribing USC employees to get their daughters admitted.

Loughlin and Giannulli initially pleaded not guilty to charges of conspiracy to commit mail fraud, as well as conspiracy to commit money laundering and bribery. However, in 2020, Loughlin pleaded guilty to one count of conspiracy to commit wire and mail fraud. She served two months in prison and paid a $150,000 fine, followed by a two-year supervised release.

Loughlin and Giannulli's defence team argued that the couple did not know their actions were illegal and that they were depending on Singer to instruct them on how to proceed legally. A source close to Loughlin claimed that she "was convinced that she was making a donation, just like parents have been doing for years" and that she "did not have any intent to do something illegal".

Despite this, a federal judge denied Loughlin's motion to dismiss all charges, calling the allegations "serious and disturbing". The judge also admonished the prosecutors for failing to hand over Singer's notes to the defence team for several months, calling it "irresponsible and misguided".

She was charged with honest services mail fraud

In 2019, Lori Loughlin and her husband, Mossimo Giannulli, were charged with honest services mail fraud, along with nearly 50 other people, in a college admissions scandal. The couple allegedly paid $500,000 to have their two daughters designated as recruits to the University of Southern California (USC) crew team, despite the fact that they did not participate in crew, thus facilitating their admission to USC.

Honest services fraud is a crime defined in 18 U.S.C. § 1346 (the federal mail and wire fraud statute), which was added by the United States Congress in 1988. The law criminalizes not only schemes to defraud victims of money and property but also schemes to defraud victims of intangible rights, such as the "honest services" of a public official. In the case of Loughlin and Giannulli, the "honest services" that were defrauded were those of the university admissions process, as they bribed school officials, thus depriving other applicants of a fair chance at admission.

The 1988 statute states:

> "For the purposes of this chapter, the term scheme or artifice to defraud includes a scheme or artifice to deprive another of the intangible right of honest services."

This addition was made to broaden the scope of what constitutes fraud so that prosecutors could obtain convictions for more intangible instances of fraud. The term "honest services fraud" has been in the news headlines due to some high-profile federal criminal cases involving celebrities and other wealthy parents who bribed universities to admit their children.

To be convicted of honest services fraud, prosecutors must prove four critical elements beyond a reasonable doubt:

• There was a "scheme or artifice" in existence designed to defraud others (e.g., giving someone an unfair advantage over someone else);
• The defendant willfully participated in this scheme to defraud, whether by offering or accepting a bribe or kickback;
• The scheme had the potential to cause harm to others by depriving them of tangible or intangible "honest services," even if ultimately it did not do so; and
• The scheme used mail or wire services, including telephone or Internet.

The possible penalties for honest services fraud are as follows:

• For general instances of honest services fraud: Fines of up to $250,000 and up to 20 years in federal prison;
• For instances of honest services fraud that involve a financial institution or which affect benefits being provided in a nationally declared disaster or emergency: Fines of up to $1 million and up to 30 years in federal prison.

Loughlin and her husband paid $500,000 in bribes to get their daughters into USC

In 2019, actress Lori Loughlin and her husband, fashion designer Mossimo Giannulli, were charged with paying $500,000 to get their two daughters into the University of Southern California (USC) as part of a college admissions bribery scheme. The couple allegedly funnelled the money through a sham charity operated by college admissions consultant, Rick Singer, who pleaded guilty to orchestrating the scheme and is working with investigators.

Loughlin and Giannulli were accused of conspiring with Singer to pass their daughters off as elite coxswains for the USC crew team, even though neither of them participated in the sport. To support this deception, Singer asked for "a picture [of the girls] with her on an ERG (rowing machine) in workout clothes like a real athlete".

In March 2018, several high schools contacted USC to express their confusion over certain students being admitted as recruited athletes. An employee of Marymount High School in Los Angeles, attended by Loughlin's two daughters, wrote: "We don't think either of the students are serious crew participants".

Loughlin and Giannulli pleaded not guilty to conspiracy to commit fraud, money laundering, and bribery. They claimed that they believed their payments were legitimate donations to the school or Singer's charity and accused prosecutors of withholding evidence that would exonerate them. However, prosecutors pointed to emails exchanged between Giannulli and an official in USC's development office, which contradicted the couple's claims. In these emails, the official offered to "flag" the application of the couple's older daughter and set up a "customised tour of campus" for the family. Giannulli forwarded the exchange to his wife, adding, "The nicest I've been at blowing off somebody".

In May 2020, Loughlin and Giannulli pleaded guilty to conspiracy to commit wire and mail fraud. Giannulli also pleaded guilty to conspiracy to commit honest services wire and mail fraud. The couple agreed to pay fines of $150,000 and $250,000, respectively, and perform community service. They hoped to spend two and five months in prison, respectively, but the judge has not yet decided whether he will accept their plea deals.

They were also charged with conspiracy to commit money laundering

In the United States, conspiracy to commit money laundering is a federal crime. Money laundering is defined as a set of criminal activities involving the use of financial transactions to generate funds or profits from illegal sources. It is often associated with other criminal activities, such as drug trafficking, terrorism, and corruption.

In the case of Lori Loughlin and her husband, Mossimo Giannulli, they were charged with conspiracy to commit money laundering in relation to the college admissions scandal. The couple allegedly paid $500,000 to have their daughters accepted to the University of Southern California (USC) as crew recruits, despite the fact that neither of their daughters participated in crew. This act of using money to influence their daughters' admission to USC is what led to the money laundering charges.

To be found guilty of conspiracy to commit money laundering, the prosecution must prove several elements. Firstly, they must demonstrate that the individuals knowingly conducted or attempted to conduct a financial transaction. In this case, the transaction in question is the $500,000 payment made by Loughlin and Giannulli. Secondly, the prosecution must prove that the individuals knew that the funds or monetary instruments involved in the transaction were proceeds of unlawful activity. In this context, the unlawful activity is the bribery scheme to secure their daughters' admission to USC. Thirdly, the prosecution must establish that the individuals intended to promote the carrying on of the unlawful activity, conceal the nature or source of the funds, or avoid transaction reporting requirements. In the case of Loughlin and Giannulli, their intent was to promote the unlawful activity of bribing college officials and conceal the true nature of the $500,000 payment.

Conspiracy to commit money laundering carries significant penalties. According to federal law, individuals found guilty of this crime may face a maximum sentence of up to 20 years in prison and a fine of up to $500,000, or twice the value of the property involved in the transaction, whichever amount is greater. These penalties highlight the severity of the crime and the efforts of law enforcement to combat money laundering activities.

Loughlin and her husband were sentenced to prison time and fines

Lori Loughlin and her husband, Mossimo Giannulli, were sentenced to prison time and fines after being found guilty of conspiracy to commit wire and mail fraud. Loughlin was sentenced to two months in prison, a $150,000 fine, and two years of supervised release. Giannulli received a five-month sentence, a $250,000 fine, and two years of supervised release.

The couple was accused of paying $500,000 to have their two daughters billed as recruits for the University of Southern California crew team, despite neither of them participating in the sport. They allegedly bribed college officials and coaches to get their daughters into the university.

Loughlin and Giannulli were charged with conspiracy to commit mail fraud and honest services mail fraud, and they pleaded not guilty to the charges. However, they were found guilty and sentenced to prison time and fines.

The prison sentences and fines served as a punishment for their involvement in the college admissions scandal, where they tried to get their daughters into a prestigious university through fraudulent means.

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