More fallout today from the wild indictments involving college-entry fraud. Bill McGlashan, the founder and managing partner of TPG Growth, has left the board of STX Entertainment, which had placed him on administrative leave after the case was announced Tuesday.
Here is an internal memo from STX founder and CEO Robert Simonds annoucing the move:
As you may know, our board member, Bill McGlashan, has been placed on administrative leave at TPG and will be stepping down from our board. This has absolutely nothing to do with his involvement with STX. Please know that TPG remains fully committed to our success. David Bonderman (Co-Founder of TPG) and Mike Stone continue to sit on our Board and TPG will fill Bill’s board seat in the next few days.
The parent company of McGlashan’s TPG Growth, TPG, also is the majority owner of CAA and helped launch STX Entertainment, among other Hollywood entities.
McGlashan was indicted Tuesday in the FBI’s wide-ranging involving wealthy parents allegedly buying their children’s way into elite universities. Charged with conspiracy to commit mail fraud and honest services mail fraud for allegedly, he is among a group of 33 parents who paid millions in bribes to coaches at such top schools as UCLA, USC, Yale Georgetown and Stanford so their children could gain admission as recruited athletes – even if they weren’t actually athletes.
McGlashan, who also has invested in such Silicon Valley giants as Uber and Airbnb, is charged with trying to game the system to get his son admitted to USC.
Andrew Lelling, U.S. District Attorney of Massachusetts, called the overall case “the largest college admissions scam ever prosecuted by the Department of Justice.”