The Money Launderer Agrees to a Plea

Chief accountant for sham foundation will plead guilty to racketeering.

June 3, 2019
 
Jessica Rinaldi, The Boston Globe via Getty Images
Steven Masera outside a federal court in March.

Federal prosecutors on Friday announced that Steven Masera, who served as accountant and chief financial officer for Edge College and Key Network, and for the Key Worldwide Foundation, has agreed to plead guilty to racketeering charges in connection with the college admissions scandal.

The network and the foundation were used by Rick Singer, mastermind of the admissions scheme, to obtain money from parents and to deliver the funds to coaches being bribed to place applicants on lists of recruited athletes -- even though those students were not recruited athletes. In other cases, the funds were used to pay off proctors to permit cheating on standardized tests.

Masera, who earlier pleaded not guilty, has indicated that he is cooperating with authorities. His involvement could be crucial to charges related to various forms of tax fraud. Some of the parents reported the money they spent on bribery as charitable contributions to a foundation, even though Key was not actually a charity.

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