Palo Alto parents now facing money laundering charge in college admissions scandal

SAN FRANCISCO (KGO) -- The federal government just upped the ante for two Bay Area parents charged in the college admissions scheme.

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Gregory and Amy Colburn are now indicted on additional charges including "money laundering." They, along with other Bay Area parents, were previously facing mail fraud charges.

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By phone, the Colburns' attorneys told ABC7 News that they believe the indictment is because they demanded a preliminary hearing for their clients.

That would have meant prosecutors would have to present their evidence in court in 21 days. They say when they wouldn't withdraw that demand and their clients wouldn't enter a guilty plea on mail fraud charges, the government indicted them as a retaliatory move.

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The US Attorney's Office says it has no comment about the new indictment.

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