What You Need to Know
- Douglas Hodge's bar from the industry by the SEC comes more than a year after he was sentenced to nine months in prison.
- He was sentenced for paying $850,000 in bribes to get four of his children into USC and Georgetown as phony soccer and tennis recruits.
- Pimco declined to comment on the sanctions against its former CEO.
The Securities and Exchange Commission has barred Douglas Hodge, the former Pimco CEO who once safeguarded the retirement savings of millions of Americans, over his role in the biggest college admissions scandal the U.S. government has ever prosecuted.
Pimco declined to comment on Monday about its former executive’s being barred.
In an order posted on the SEC’s website last week, the SEC said it had accepted a settlement offer by Hodge in which he agreed to be barred from associating with any broker, dealer, investment advisor, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and also to be barred from participating in any offering of a penny stock.
Hodge was sentenced in February 2020 to nine months in prison for paying $850,000 in bribes to get four of his children into the University of Southern California and Georgetown as phony soccer and tennis team recruits. The sentence was pronounced in federal court in Boston. Hodge was the 14th parent to be sentenced.
It was not immediately clear on Monday why it took the SEC more than a year to bar Hodge from the industry. The SEC did not immediately respond to a request for comment.