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Yet another Silicon Valley venture capitalist implicated in college admissions scandal

Yet another Silicon Valley venture capitalist implicated in college admissions scandal
[Photo: Cole Keister/Unsplash ;Pepi Stojanovski/Unsplash]

It looks like another of Silicon Valley’s own is implicated in the college admissions scandal.

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On Wednesday, Axios reported that venture capitalist Chris Schaepe is no longer employed at Lightspeed Venture Partners following an admission that he too hired Rick Singer, the mastermind behind the “Operation: Varsity Blues” controversy.

Schaepe joins another name in tech previously outed in the scandal:  TPG Growth founder Bill McGlashan, who was an early investor in Uber and Airbnb.

Earlier this month, federal authorities arrested Singer, who served as CEO of a college admissions prep company that took millions from parents in exchange for falsifying records to elite schools. Singer was charged with racketeering, money laundering, conspiracy to defraud, and obstruction of justice. He has pled guilty to all accounts.

Schaepe told his partners that he sought Singer’s services in an effort to help his son. The boy had wanted to manage the men’s basketball team at the University of Texas, and sought an introduction. When those plans fell through, Singer then reportedly facilitated an introduction to the UT men’s tennis coach, who then ultimately helped Schaepe’s son achieve a letter of intent to join the school.

According to a complaint obtained by the L.A. Times, Schaepe initially transferred stock valued at more than $455,000 to Singer’s foundation, followed by two more stock transfers totaling more than $175,000. 

Schaepe, however, not among the dozens of parents arrested earlier this month, including high-profile celebrities such as Lori Loughlin and Felicity Huffman.

The venture capitalist told Axios he did not knowingly participate in any bribery schemes.

“We are deeply disturbed that the person we had trusted to guide us through the college application process was engaged in inappropriate acts,” reads a statement from Chris Scheape’s spokesperson. “Like countless other families, we believed that his services and his foundation were all above board, and we are shocked by his deception.”

The fallout from college admissions scandal continues across multiple sectors. In the last month, Sephora dropped YouTube star Olivia Jade after it was discovered that she posed as a crew recruit to USC despite never having rowed competitively. Her mother, Full House actress Lori Loughlin, also suffered career blowback, and the Hallmark Channel announced that it, too, was severing ties.

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