this is "nightline." tonight, breaking news. a mass shooting, with mass casualties at two mosques in new zealand. four people now in custody. plus, class divisions. the college admission scandal and ruined reputations. the hollywood mom denying charges, but already losing her hallmark roles. >> yes, well college was a long team ago. >> her daughter's makeup deal over. students who played by the rules now feeling cheated. tu sive hd day a ple like us w tops.g rich kids into swanky

schools. and, the dropout, a silicon valley standout who promised to change health care forever. now accused of orchestrating a multi-million dollar fraud. >> holmes pleaded not guilty. >> a special preview of our new documentary. the epic rise and fall of elizabeth holmes. "nightline" will be right back.

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good evening. breaking news as we come on the air tonight, a mass shooting at two mosques in the city of christchurch, new zealand. one witness says he saw a man dressed in black entering one of the mosques and then hearing dozens of shots and then seeing people running from the mosque. four people now in custody. new zealand tv showing police pulling over one of the s suspects. the prime minister saying this is one of new zealand's darkest days. we'll have more later today and on good morning america. but now we turn to the college scam, guaranteeing wealthy parents' kids a golden ticket. but investigators say what they did was criminal, exposing the stark division between the haves

and have-nots. she burst into our living rooms 30 years ago as the do-gooder aunt becky on "full house." >> he may have embellished, lived a bit on our application. >> she then became the queen of hallmark holidays in hallmark dropping its star after she flew home from canada in disgrace. a warrant out for her arrest. cameras catching her at her bel-a bel-air mansion after posting $1 billion bond. just days after prosecutors say a largest college admissions scam ever. >> through the steady application of wealth combined with fraud. >> reporter: the fallout massive, taking down a who's who

of the rich and connected, including silicon valley titans, a wine magnate, the head of a prestigious law firm and the o ceo. >> he bragged about getting extra help with her s.a.t.s. >> reporter: and already, two class action lawsuits have been filed. operation varsity blues, exposing not only an alleged elaborate criminal fraud but also the dark underbelly of just how far parents are willing to go to get their kids a spot at a top-tier school. >> in this case nothing was off limits. >> it's outrageous that they are bribing college, and they're receiving salaries whether they're public or private schools. >> reporter: he is managing director of ivy coach, a high-end destination in the elite industry of college counseling. there is a real sense that that's a strategic advantage for elite students. >> absolutely. if you have the means to do so,

you do. you hire an adviser like you have aeaky pipe. >> reporter: rick singer knew how to gamealng about donating a building so a school's more likely to take your son or daughter. we're talking about deception and fraud. >> hi, my name is rick singer, and i'm the founder of the key. as a father myself, i understand the stress the college admissions process can put on your family. >> reporter: his appeals centered around a promise. >> don't leave it to chance. >> reporter: lori laughlin allegedly took his advice. she areaccused of paying singer $500,000 to get their two daughters, isabella ands social media influencer with roughly 2 million subscribers on

her youtube channel, landing paid partnerships with sephora, tresemme and amazon, this post, officially a college student, it's been a few weeks since i moved into my dorm and i absolutely love it. after the news broke, sephora and tresemme terminating their partnership with jade. >> why would i pay all this money for your education. >> reporter: she learned of her parents' indictment while aboard a yacht in the bahamas, owned by rick caruso, chair of the usc board of trustees. his daughter a sorority sister at usc. she flew back home after news of her mother's arrest. in the wake of the indictment, they firr allegedly taking brib. there are six students in the current admissions cycle connected to the scheme. all of them will be denied

admission to usc. on campus, students said they feel cheated. >> i feel for people like us who actual actu actually strive hard day and night to come here and learn. >> reporter: yale firing its soccer coach, wake forest's volleyball coach put on leave, leaving many to wonder how they got away with it. >> it's no surprise that the coaches bribed were involved in sports that don't get a lot of attention. squash, sailing, soccer. if the usc quarterback didn't show up for practice, someone would notice. but in some of the more minor sports, the coach is the only arbiter of who's any good. so he can pick the spots and no one would notice if that kid didn't end up participating. >> you have this broker who'swh

happen. you need better scores? we can deal with that. you need be an athlete to help your application, we can handle that. and he would go and literally bribe people. >> reporter: prosecutors say fell felicity huffman paid $15,000 to bribe a test proctor for her daughter who would secretly change the answers. she's out on a $25,000 bond after being cuffed and arrested. >> asking for a bribe? >> pretending you're above that? >> i've got my checkbook. >> reporter: the star of "desperate housewives" apparently so desperate to land her daughter in a name-brand school. >> it wasn't the actors business leaders, it involved s.a.t. proctors and one man at the center of it all. >> reporter: singer made it possible by funneling bribes

through a fake college counseling non-profit called the key. >> this enabled the parents teaf the payment but also take the tax writeoff at the end of the year. >> reporter: singer pled guilty this week to all charges he was facing. court filings suggest he had been scheming four decades. one father allegedly asking is there any risk this could blow up in my face. singer responding it hasn't in 24 years. he was focussed on building his clientele. >> this is a game. >> reporter: a video shows singer in 2010 pitching himself as the star of his own reality show, centered around the stresses of college admissions. while the show never sold, people did buy into singer's idea. >> mom and dad go to a dinner party. they hear about every kid getting into this school, going to this summer program, doing this, doing that. sunday morning, my phone rings off the hook.

why? how come we're not doing this? >> reporter: after years of operating an illegal business, singer's elaborate fraud unravelled over the course of a year. >> it was uncovered by at boston on a different case.f the scheme unravelled from there to become the largest-ever cheating scandal prosecuted in the united states. >> reporter: after being confronted by the fbi, singer turned againstis had clients. >> he wore a wire. that is how the nib fbi was able to nab so many parents using his services. at one point, rick singer is heard bragging about doing this for over 800 families and said there was a guarantee. >> reporter: the company tailors to deep-pocketed families. what do you get for $1.5 million?

>> well, that's not our typical fee. but when people come to us early on in high school or before high co school, they map out what courses they should be taking, what testing they should be involved in. >> reporter: but it sounds like you choreograph a high school student's career. >> i wouldn't say choreograph. we find out what they're interested in and help them get involved in activities. are yo . >> reporter: not everyone can afford that, which is why people are saying the deck is stacked. >> but not everyone needs a college counselor, if they just use common sense, they can beat this process. don't play three sports and a musical instrument, national honor society isn't going to impress anyone. >> reporter: are you dispensing free advice? >> i'm des penciispensing free . >> reporter: but yet there are still those willing to

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at just 19 years

elizabeth holmes dropped out of stanford, transforming herself into a steve jobs wnae, turtlen seemingly dropping her voice. her eck centuries its didn't go unnoticed. here's rebecca jarvis with our new documentary. >> reporter: black turtlenecks, blue ice, smoky voice. >> we will change our lives and our world. >> here it is, here's the nexts steve jobs. >> reporter: elizabeth holmes said she had an amazing invention. >> making it possible to do any lab test from a tiny drop of blood from a finger. >> reporter: the youngest female self-made billionaire, ceo of her own company. >> magazine cover after magazine cover after n the golden girl o valley. >> part of the new time 100 list just out. >> i heard she was traveling

with body guards, carrying guns and traveled in private jets. >> reporter: only problem? it didn't work. >> did ms. holmes know that theranos could not do all those tests? >> yeah, she knew. >> reporter: a whistle blower risked it all. >> not only did they fool the investors. they fooled the media. >> a tiny drop from a finger. >> they fooled patients. >> hey, yeah, let's try it. >> they fooled doctors. >> first they think you're crazy and they fight you, and then you change the world. >> they await a criminal trial. >> reporter: holmes pleaded not guilty. >> enough elizabeth holmes, listen, this company is a fraud! >> reporter: this was not how a young billionaire thought her empire would end. >> please raise your right hand. do you swear to tell the truth, the whole truth and nothing but the truth? >> i do. >> thank you. >> reporter: it's certainly not where it began. behind those piercing eyes was a peculiar young woman who seemed

to survive on ambition alone. >> i had this image of her as kind of like a nun-like existence, you know, black, quiet, all alone. she lived in an apartment, which she wouldn't let me see. said there was just a one bedroom, refrigerator just had bottle of water in it. she had a lot of, you know, green drinks and all this stuff that i, you know, i looked at and said oh, my god, i can't. >> if you are what you eat, what are you? >> green juice. >> best word to describe you? >> mission-oriented. >> favorite place to visit? >> my office. >> one of elizabeth's most bizarre characteristics was her obsession with steve jobs and with apple computer and imitating him and the company. >> reporter: she even went after steve jobs' own right hand man. >> i'd like to welcome one of my

colleagues. >> reporter: avi was one of jobs' closest friends. after retiring, he learned about elizabeth holmes and theranos. >> when you find these ideas that can cut across everything, it's huge. and so clearly, if this could be made to work then it was going to be hugely impactful. >> reporter: was she selling you on the mission of theranos? how did she come across? >> she was definitely selling me on a vision for what she wanted to do in this realm of blood testing and making it something that was much more accessible than it's ever been. >> reporter: so you joined the board. >> joined the board. >> reporter: his involvement attracted others from apple to join theranos, like ana arriola, who had helped design the iphone. >> opportunity was altruistic, potentially human kind changing and i was very curious unfortunately. i left 15,000 shares at apple.

but c'est la vie. >> reporter: anna may have left apple. but to her surprise, she certainly didn't leave all of steve jobs behind. >> elizabeth was very curious about steve's attire. and i explained to her that he was inspired by sony's heritage ofg issay miyakimiyakimiyakimiyi and design a lot of the line manager apparel. she tracked down who that was and the rst est is history. >> reporter: her voice, a surprising baritone. >> it would likely cost her a few thousand dollars to get these tests done. >> reporter: it was fake according to ana. >> we didn't realize it wasn't her voice until at a party, she had a little too much to drink or whatnot but she fell out of character and exposed that wasn't necessarily her true

voice. >> reporter: in this interview with npr from 2005 we hear a very different-sounding liz bit. . >> no, it.e came to me, she didn't have a low voice. >> reporter: she didn't? >> wh >> no. when i next saw her was at the harvard medical school board meeting where she was being introduced. and she has this low voice, and i thought, oh, my god. >> it's prestige, whether it be the turtleneck, baritone, the swagger, the sense of belief in herself. you're captivated. >> reporter: but then, as the money poured in, the problems poured out. suddenly, it wasn't just her voice that insiders were worried about. >> i would never expected anyone would behave the way that she behaved as a ceo. and believe me, i worked for steve jobs. i saw some crazy things.

>> our thanks to rebecca jarvis and her entire team. "the dropout" airs friday, 8:000 central right here on abc. up next, a familiar face comes in to view. ew. unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you

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