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Lori Loughlin and her husband, Mossimo Giannulli, plead not guilty of corruption in the university admissions scandal.
UNITED STATES TODAY & # 39; HUI

BOSTON – The University of Southern California has raised the possibility of a legal dispute with actress Lori Loughlin and her husband, designer Mossimo Giannulli, for their alleged roles in the scandal of admissions into American universities, according to a letter from one of their lawyers last month.

The potential civil dispute was evoked in a petition filed Thursday by prosecutors seeking a court hearing on possible conflicts of interest that would face lawyers representing 11 of the 50 defendants in the vast affair. admissions to college.

Among the conflicts, three law firms working for the defendants also represent USC, which their clients are accused of defrauding, prosecutors said.

BOSTON, MA – APRIL 03: Lori Loughlin leaves the US courthouse John Joseph Moakley after appearing in Federal Court to answer charges stemming from the university admissions scandal on April 3, 2019 in Boston, Massachusetts. (Photo by Paul Marotta / Getty Images) (Photo: Paul Marotta, Getty Images)

This includes the Boston-based Latham and Watkins law firm, which represents Loughlin and Giannulli. The couple faces charges of mail fraud and money laundering for allegedly paying $ 500,000 in bribes for their two daughters to join the University of Southern California as teammates although they have never been crew athletes. Both pleaded not guilty.

A letter dated May 6, addressed to Loughlin and Giannulli prosecutors, was attached to the court record. She has been sent to prosecutors to address their concerns about conflict.

Lawyer William Trach wrote that USC had hinted that the company's portrayal of the couple "posed predictable conflicts because it's possible that USC would have civil disputes with one or both of them." ;to come up". He did not specify the nature of the possible lawsuits.

A USC spokeswoman did not comment when asked to confirm or deny whether USC was planning to sue Loughlin and Giannulli.

More: College admissions scandal: parents say payments to the leader were not bribes

In the prosecution 's motion, filed under the seal of the redactions, they argue that he is "directly opposed" to the three law firms to simultaneously represent USC and the defendants in the US Attorney General. case of admissions to colleges. In the case of a lawsuit, the petition indicates that several witnesses from the USC should testify that the university was defrauded.

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"Defense lawyers are likely to look specifically at these witnesses, clients of their own company," the prosecution said. "And, if the defendants are found guilty, USC will have the legal right to seek redress and provide a statement from the victim, one of the defense lawyers also having the obligation."

Law firms said there was no conflict, noting that USC was not a party to the government case and represented USC in cases unrelated to the fraud and corruption scheme. corruption.

In his May 6 letter, Trach stated that Loughlin and Giannulli both stated in writing – and are willing to declare in an affidavit – that they knowingly waive any potential conflict based on USC representation by the firms. d & # 39; lawyers.

"Our law firm is convinced that there is no reasonably foreseeable conflict of interest in this case," wrote Trach.

More: Lori Loughlin, her husband Mossimo Giannulli, plead not guilty in a scam to university admissions

They proposed resolving all conflicts by having the boards deal with those parts of the dispute that specifically relate to USC, such as the cross-examination of USC witnesses.

Other potential conflicts cited by the prosecution are:

  • The Ropes and Gray law firms, representing Douglas Hodge and USC, and the Nixon Peabody LLP law firm representing defendants Gaml Abdelaziz and USC. Hodge and Abdelaziz are both parents indicted in the case.
  • The law firm Boies Schiller Flexner LLP representing the defendants Robert Zangrillo and Davina Isackson, both parents.
  • Several law firms representing several individual defendants. This includes Latham's representations of Loughlin and Giannulli, as well as Hooper Lundy & Bookman representing Amy Colburn and Gregory Colburn; Todd & Weld and Duane Morris LLP representing Diane Blake and Todd Blake; Ropes representing Douglas Hodge and Elizabeth Henriquez; and attorney Martin Weinberg representing David Sidoo and Robert Zangrillo. Each of the accused is a parent.

A fourth set of potential conflicts of interest – listed first in the court record – is entirely redacted.

At a hearing on Monday, Federal Magistrate Page Kelley said she would demand that the defendants appear in court in person to settle the disputes. It is not known when the hearings will take place.

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