Your Survival Guy

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When the Rules Apply to You but Not to Them

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Justin Baer reports at The Wall Street Journal that the giant bond investing firm, Pacific Investment Management Co. (Pimco), “was aware employees had used the services of the firm founded by the figure at the center of a sweeping college-admissions scandal but it had “no information” suggesting these workers acted improperly.”

He writes:

Douglas Hodge, a longtime Pimco executive who served as its CEO until 2016, was one of 33 wealthy parents accused this week of paying for bogus entrance-exam scores or fake athletic achievements to get their children admitted into competitive colleges. Pimco is a bond-investing giant based in Newport Beach, Calif.

Federal prosecutors said in a complaint filed this week in federal court that Mr. Hodge conspired with William Rick Singer, who founded the college-prep firm called the Key, to bribe officials in exchange for securing admission for his children. Mr. Hodge’s dealings with Mr. Singer date back to at least 2008, according to the complaint.

Attorneys for Messrs. Hodge and Singer didn’t immediately respond to requests for comment. Earlier this week, Mr. Hodge said he planned to defend himself against the charges and declined to comment further.

Pimco in a statement Friday said some of its employees turned to Mr. Singer but it didn’t mention Mr. Hodge by name. “Like many families in Southern California, some Pimco employees have used Mr. Singer’s legitimate college prep services,” a spokesman said in the statement. “We have no information at this time, however, to indicate Pimco employees acted improperly in their private capacity.”

Read more here.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.