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PALO ALTO (CBS SF / AP) – The head of a Silicon Valley hedge fund, trapped in the corruption scandal at universities, is pulling out.
Manuel Henriquez, who was also the largest executive investment giant, PIMCO until 2016, will be replaced as CEO and Chairman of the Board of Hercules Capital in Palo Alto.
Henriquez was arrested in New York and released on bail of $ 500,000 after a brief court appearance in Manhattan federal court on Tuesday.
Manuel Henriquez of Hercules Capital saw the bell ring the opening of the New York Stock Exchange. (CBS)
Shares of the hedge fund plunged 9% after Henriquez's arrest on Tuesday.
List: Bay Area accused accused of college admissions scandal
Hercules said Wednesday that Henriquez will still occupy a seat on the board of directors and will act as adviser.
According to court documents obtained by KPIX 5, Henriquez and his wife, Elizabeth, paid a bribe of US $ 25,000 for a cooperating witness to sit "side by side with the girl during the examination and he provided answers to the exam questions, and after the exam, he "jubilated" … about the fact that they had cheated on him and were drawn from it ".
Fifty people, including Hollywood stars Felicity Huffman and Lori Loughlin, have been charged with a ploy in which wealthy parents have bribed university coaches and other insiders to take their children to some of the most selective schools in the country.
Federal authorities have described this as the biggest scam in college admissions ever pursued by the US Department of Justice, with parents being accused of paying about $ 25 million in jail time. wine.
© Copyright 2019 CBS Broadcasting Inc. All rights reserved. Associated Press contributed to this report.
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