The alleged scheme focused on getting students admitted to elite universities as recruited athletes, regardless of their athletic abilities, and helping potential students cheat on their college exams, according to the indictment.
Boston U.S. Attorney Andrew Lelling held a press conference Tuesday on the incident.
"Singer worked with the parents to fabricate impressive athletic profiles for their kids", Lelling said, adding that in some cases students faces were placed, using the image editing program Photoshop, onto the bodies of athletes.
William "Rick" Singer, 58, pleaded guilty to a variety of charges for organizing the scheme, which investigators dubbed "Operation Varsity Blues".
Four people accused of running the scam over seven years, and 13 officials associated with university sports and the testing system were also charged. Macy was pictured Tuesday visiting Huffman in the federal building in Los Angeles where she is being questioned. It's a big, glaring example of how patently unfair society can be-all it took for these students to get into top schools were parents with lots of money and a network of people willing to commit white collar crime.
The former Desperate Housewives star looked extremely exhausted as she walked by a number of paparazzi waiting to take her picture. "Huffman later made arrangements to pursue the scheme a second time, for her younger daughter, before deciding not to do so".
None of the students involved were charged as many were not aware of the scam, authorities said.
Among them were Oscar-nominated actress Felicity Huffman, best known for her starring role on TV show Desperate Housewives; actress Lori Loughlin, known for her work on the 80s comedy series Full House, and Loughlin's husband, fashion designer Mossimo Giannulli.
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On a call with a wealthy parent, prosecutors said, Singer summed up his business thus: "What we do is help the wealthiest families in the USA get their kids into school ... my families want a guarantee". Both actresses are in custody, the Justice Department said.
How did the alleged scheme work?
The parents were then advised to choose one of two test centers that Singer's company said it had control over: one in Houston, Texas, and the other in West Hollywood, California.
It has been claimed the IRS (Internal Revenue Service) and the Federal Bureau of Investigation have set out to arrest 46 individuals across the US, after uncovering a $25 million ($35 million AUD) fraud scheme which includes allegedly faking test scores.
Mr Singer would agree with parents beforehand roughly what score they wanted the child to get.
"I don't know how much of school I'm gonna attend", Giannulli said in one video clip where she talks about her plans for school.