The head of a Silicon Valley hedge fund who became ensnared in a massive college bribery scandal is stepping down.
Manuel Henriquez will be replaced as CEO and chairman of Hercules Capital in Palo Alto, California.
Henriquez was arrested in New York City and released on $500,000 bail after a brief appearance in Manhattan federal court Tuesday.
Shares of the hedge fund plunged 9 percent on word of Henriquez’ arrest Tuesday.
Hercules said Wednesday that Henriquez will still hold a seat on the board and will serve as an adviser.
Fifty people, including Hollywood stars Felicity Huffman and Lori Loughlin, were charged in the scheme in which wealthy parents allegedly bribed college coaches and other insiders to get their children into some of the nation’s most selective schools.
Federal authorities called it the biggest college admissions scam ever prosecuted by the U.S. Justice Department, with the parents accused of paying an estimated $25 million in bribes.