Firm That Hired Intern in College Scandal Cuts Dad's Company


(Bloomberg) -- Hercules Capital Inc. took a beating from several research shops after Chief Executive Officer Manuel Henriquez was charged in a college-admission cheating conspiracy. One of them: the firm that gave his daughter an internship.

Henriquez's older daughter, Isabelle, interned at Compass Point Research & Trading LLC while attending Georgetown University, she wrote on her LinkedIn profile. She got into the school after her parents allegedly paid phony proctors to help her cheat on standardized tests.

On the day the Hercules CEO was charged, Compass Point cut its rating on the Palo Alto, California-based venture-debt firm to neutral from buy. Hercules shares dropped 8.9 percent on Tuesday, and Henriquez stepped down as CEO.

"Given current events there is the possibility that originations could slow," Compass Point analyst Casey Alexander wrote in a research note Tuesday. "We do believe the strong credit culture sits across the HTGC platform and would not likely change, but the ability to continue rapid origination growth could suffer."

Analysts from firms including Wells Fargo & Co. and Keefe, Bruyette and Woods Inc. also cut their ratings and price targets for Hercules. Compass Point had a buy rating on the stock starting in September 2017, and a neutral rating for more than a year before that, according to data compiled by Bloomberg.

Compass Point CEO Scott Dreyer didn't respond to an email and phone call seeking comment on the internship, and other executives at the firm didn't respond to calls seeking comment. Isabelle Henriquez didn't respond to an email or a message sent through LinkedIn.

In addition to issuing research on Hercules, Compass Point has worked on stock and debt sales for the company. It co-managed note offerings for Hercules totaling $265 million over the past two years, and last year it was lead manager of a $73 million follow-on stock offering, according to Compass Point's website.

Manuel and Elizabeth Henriquez allegedly paid for proctors to help their two daughters cheat on college-entrance exams and arranged to bribe the head tennis coach at Georgetown to designate their older daughter a recruited athlete, according to the federal indictment Tuesday. The tennis coach was also charged. None of the students involved in the alleged conspiracy was charged.

Isabelle Henriquez, identified only as the Henriquezes' older daughter, participated in the conspiracy, according to the indictment. An exam proctor "sat side-by-side with the daughter during the exam and provided her with answers to the exam questions, and after the exam, he 'gloated' with Elizabeth Henriquez and her daughter about the fact that they had cheated and gotten away with it," prosecutors said.

(Updates with note, stock offerings in seventh paragraph.)

To contact the reporter on this story: Michelle Kim in New York at

To contact the editors responsible for this story: Michael J. Moore at, Daniel Taub

For more articles like this, please visit us at

©2019 Bloomberg L.P.


More Related News

The Bursting of the Tesla Stock Bubble
The Bursting of the Tesla Stock Bubble

Morgan Stanley threw the biggest blow, declaring that in a worst-case scenario, Tesla's shares could sink to a shocking $10. A Wedbush analyst said the carmaker is facing a "code red situation" and cast doubt on whether Tesla can sell enough of its electric cars to make a profit. Some $23 billion in

Boeing Faces SEC Probe Into Disclosures About 737 Max Troubles
Boeing Faces SEC Probe Into Disclosures About 737 Max Troubles

Officials in the SEC's enforcement division are examining whether Boeing was adequately forthcoming to shareholders about material problems with the plane, said the people who asked not to be named because the probe isn't public. The SEC inquiry is in its early stages and the regulator's investigations

Boeing's 737 Max Bills Include $2,000 a Month to Park Each Grounded Jet

Crews have sealed 34 Southwest Airlines Co. jets against the Mojave Desert's sun, wind and sand, as well as insects and birds that can creep into wheel wells and engine air inlets. Southwest declined to discuss the expense, but one industry veteran said such sojourns run about $2,000 a month for each

Teen Climate Activist Rips Politicians Ahead of EU Vote
Teen Climate Activist Rips Politicians Ahead of EU Vote

On a day when teenagers across the world again mobilized against climate inaction, the movement's icon, Swedish activist Greta Thunberg, said the continent's policy makers -- including environmentalists -- are all failing to heed the climate crisis. "There's no political party that's doing anywhere near enough," Thunberg said in an interview in Stockholm on Friday. Thunberg spoke as youths went on strike in a so-called Fridays for Future event spanning cities across the world.

Stocks Rebound at End of Tough Week; Bonds Steady: Markets Wrap
Stocks Rebound at End of Tough Week; Bonds Steady: Markets Wrap

Carmakers and energy firms pushed the Stoxx Europe 600 index higher, while futures on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 also climbed in the wake of steep declines a day earlier. Despite the gains, a gauge of global equities is headed for a third straight weekly drop, its longest

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.