SAN FRANCISCO (KGO) -- The largest college admissions cheating scam ever prosecuted in the United States is hitting the Bay Area.
Stanford University officials have appointed an interim head coach for their sailing team after former coach John Vandemoer pleaded guilty to racketeering conspiracy charges.
Federal charges say he was "designating applicants to Stanford as purported recruits" on his sailing team "in exchange for bribes."
None of the students ended up attending Stanford.
"Clinton Hayes, in the midst of his 9th year as an assistant coach at Stanford, will serve as interim head coach," Stanford's Athletic Director Tommy Gray told ABC7 News. "We expect the season to continue as planned."
In Palo Alto, investment firm Hercules Capital announced in a press release, founder, Manuel Henriquez, has voluntarily stepped aside as chairman and CEO after he became ensnared in the scandal.
Henriquez was arrested in New York City on Tuesday and released on $500,000 bail.
According to the indictment, Henriquez and his wife, Elizabeth, "participated in the college entrance exam cheating scheme, on four separate occasions, for their two daughters.
The indictment also claims the family paid the head tennis coach at Georgetown University nearly $1 million dollars to designate their older daughter as a tennis coach in order to facilitate her admission to the university.
Hercules said that Henriquez will still hold a seat on the board and will serve as an adviser.
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