Loughlin and her husband Mossimo Giannulli are each facing up to 40 years in prison after being charged with conspiracy to commit fraud and money laundering. Authorities said they paid $500,000 to have their daughters designated as athletic recruits, helping them get into the University of Southern California.
Reports have indicated that the charges created a wedge between Loughlin and Olivia, 19. The YouTube star and social media influencer has lost a number of her brand partnerships, including with Sephora and TRESemmé.
“Lori felt at this point her daughter would come around and forgive her. They have gone to therapy in hopes things would improve, but it doesn’t seem that that’s happened. Olivia is still not talking to her mother because she’s hurt and feels betrayed,” a source told Entertainment Tonight.
Loughlin thought that she and her daughter would have moved past the situation by now but that apparently has not been the case because Olivia blames Loughlin for the dilemma.
“She feels this could have all been avoided had her mother listened to her when she expressed she wasn’t interested in going to college,” the source said. “The fact she has lost her business deals and can’t go out in public without being photographed and scrutinized is a constant reminder of what her mother has done.”
According to the source, Loughlin believes she should not serve time in jail, thinking what happened “was all a misunderstanding” and not a serious crime.
Earlier in May, a source told People magazine that Loughlin and her legal team were increasingly confident that she wouldn’t need to serve time in jail.
“The more that [the attorneys] look at the alleged evidence against them, the better they feel about the case. Everyone is feeling more and more confident that this could end well for them,” the source said.
Loughlin preferred not to go to trial but thinks that going through one and seeing all the evidence laid out will lead to her exoneration, the source indicated.
“She feels like she’s got a valid defense, and that when all the evidence comes out, that she won’t be found guilty,” the source said.
Some parents charged in the scheme have either entered guilty pleas or agreed to plea guilty, including actress Felicity Huffman, who officially entered the plea in court on May 13.
Others, including Loughlin and Giannulli, are determined to fight the case and pleaded not guilty. Initially charged with conspiracy to commit mail fraud, the not guilty plea prompted prosecutors to add a second charge of money laundering conspiracy, meaning defendants face up to 40 years in prison versus the maximum of 20 years they faced before.
The next court appearance for the actress and her husband is set for June 3 at 11 a.m., according to the Department of Justice.