Lori Loughlin's Legal Troubles: Understanding Her Crime

Actress Lori Loughlin and her husband, fashion designer Mossimo Giannulli, were charged with conspiracy to commit mail fraud and honest services mail fraud, a felony which carries a maximum sentence of five years behind bars. They were also charged with money laundering conspiracy, conspiracy to commit wire and mail fraud, and honest services wire and mail fraud. The couple allegedly paid $500,000 to have their two daughters billed as recruits for the University of Southern California crew team, even though neither of them participated in the sport.

Conspiracy to commit mail and wire fraud

In the case of Lori Loughlin, she was charged with conspiracy to commit mail and wire fraud for her involvement in the 2019 college admissions scandal. Loughlin and her husband, Mossimo Giannulli, allegedly paid $500,000 to have their two daughters accepted to the University of Southern California as crew recruits, despite the fact that neither daughter participated in the sport. This act of using wire fraud to further an illegal scheme falls under the category of conspiracy to commit mail and wire fraud.

To be convicted of conspiracy to commit mail and wire fraud, it must be proven that there was an agreement between two or more people to commit fraud and that at least one of the parties took action to carry out the plan. The punishment for this crime can be severe, with fines of up to $250,000 and a prison sentence of up to 20 years.

Loughlin ultimately pleaded guilty to one count of conspiracy to commit wire and mail fraud and was sentenced to two months in prison, a $150,000 fine, and two years of supervised release.

Honest services fraud

In 2019, Lori Loughlin was charged with honest services fraud, among other charges, for her involvement in the college admissions scandal. This scandal involved a scheme in which celebrities and other wealthy parents bribed college universities to admit their children.

> 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.

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 statute has been a target of criticism due to its vague language, which some argue can be used to prosecute any kind of unethical behavior as a federal crime. However, in 2010, the Supreme Court of the United States narrowed the interpretation of the statute to cover only "fraudulent schemes to deprive another of honest services through bribes or kickbacks supplied by a third party who has not been deceived".

Conspiracy to commit mail fraud

In 2019, Lori Loughlin was charged with conspiracy to commit mail fraud as part of the college admissions scandal. The actress and her husband, Mossimo Giannulli, allegedly paid $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.

To prove conspiracy to commit mail fraud, prosecutors must establish three elements: an agreement between two or more people to commit mail fraud, the intent to commit mail fraud, and an overt act committed by one of the conspirators in furtherance of the conspiracy. The overt act need not be unlawful but must be connected to the achievement of the underlying crime.

Conspiracy to commit federal program bribery

Loughlin was accused of paying $500,000 to have her two daughters billed as recruits for the University of Southern California crew team, despite neither of them participating in the sport. This is an example of conspiracy to commit federal program bribery because Loughlin and her husband, Mossimo Giannulli, allegedly conspired to bribe college coaches and administrators, who are agents of organisations receiving federal funding.

In the United States, federal law prohibits "corruptly" giving or offering to give "anything of value to any person" with the intention of influencing an agent of a local government or an organisation that receives federal funding. In this case, the "thing of value" was the $500,000 bribe, and the agents influenced were the college coaches and administrators.

The law also states that the organisation, government, or agency in question must receive benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, loan, guarantee, insurance, or other forms of federal assistance. The $500,000 bribe far exceeds this threshold.

Loughlin and Giannulli initially pleaded not guilty to the charges, claiming they were under the impression they might be breaking rules, but not laws. However, they later pleaded guilty and accepted a plea deal. As a result, Loughlin served two months in prison and was fined $150,000, while Giannulli served five months and was fined $250,000.

Money laundering

Lori Loughlin and her husband were accused of paying $500,000 in bribes to get their daughters into the University of Southern California as crew team recruits, despite the fact that neither of them participated in the sport. This act of bribery is a form of money laundering, as they funnelled money through a purported charity and a for-profit corporation to disguise the true nature of the payment.

The couple was also charged with conspiracy to commit mail and wire fraud, as they used the mail and wire communication systems to facilitate their illegal activities. This charge carries a maximum sentence of 20 years in prison, supervised release of three years, and a $250,000 fine.

In addition to the above, Lori Loughlin and her husband were among 16 parents who were indicted on a third charge of conspiracy to commit money laundering. This charge has a maximum sentence of 20 years in prison, three years of supervised release, and a $500,000 fine. This highlights the severity of their actions and the potential consequences they face.

Overall, the case of Lori Loughlin and her husband, Mossimo Giannulli, demonstrates the serious consequences that can arise from money laundering and related crimes. It serves as a reminder that such actions are illegal and can have significant legal and financial repercussions.

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