Manuel Henriquez has resigned as CEO of Hercules Capital and TPG executive William McGlashan has been placed on indefinite leave at the private equity firm after they were accused in a scam to help their children get into top colleges.
Henriquez, 55, resigned as chairman and CEO of his California-based venture capital firm, according to a company statement, which did not mention the admissions scheme. He was arrested in New York on Tuesday and released on $500,000 bail. Hercules' shares lost 8.9 percent after the arrest announcement, but were slightly higher on Wednesday.
"As a result of the charges of personal misconduct against Bill McGlashan, we have placed Mr. McGlashan on indefinite administrative leave effective immediately," TPG said in a statement. It said Jim Coulter, co-CEO of TPG, will be interim managing partner of TPG Growth and The Rise Fund. Other business executives charged included Agustin Huneeus, head of Huneeus vineyard in Napa Valley, California; Gordon Caplan, co-chairman of international law firm Willkie Farr; Douglas Hodge, a former CEO of Pimco; and Robert Zangrillo, CEO of Dragon Global, an investment company whose website says it's managed more than $1 billion in companies that have over $500 billion in market value today. The enterprises did not immediately respond to CNBC requests for comment.
Being competitive in business often requires walking a thin line, but it is clear that lines were crossed in this case. Good faith and ethics are also part of business.
What is the scam? Is it like ewarren SenWarren lying about minority status and not even having to fork over any money?
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