Olivia Jade Giannulli, 19, and Isabella "Bella" Giannulli, 20, aren't allowed to withdraw from the University of Southern California while officials there investigate their admissions following the indictments of parents Lori Loughlin and Mossimo Giannulli.
"We are conducting a case-by-case review of any students who may be associated with the alleged admissions scheme," the school stated.
"USC has placed holds on the accounts of students who may be associated with the alleged admissions scheme; this prevents the students from registering for classes (until they have agreed to participate in the review of their case), withdrawing from the university, or acquiring transcripts while their cases are under review."
Following the review of each case, the school will "take the proper action," which may include revoking admission or expulsion.
The school has already fired two employees linked to the allegations and placed a faculty member on leave who was named in the federal indictment as a parent.
The internal investigation includes a thorough review of the student-athlete admissions process, officials said in the statement.
Loughlin and Giannulli paid $500,000 to have William "Rick" Singer get their daughters designated as recruits for an athletic team despite their lack of experience in athletics, according to emails and phone calls obtained by federal prosecutors.
The scheme worked and both daughters were admitted to the elite university, prosecutors said.
Singer, who owned a nonprofit and orchestrated the nationwide scheme, created a fake profile presenting Olivia Jade as a crew coxswain for the L.A. Marina Club team, requesting from the family an “action picture” to place in the profile. Twelve days later, Giannulli emailed a picture of Olivia Jade on a rowing machine.
She was presented to the USC subcommittee for athletic admissions and was accepted as an athlete-student. “CONGRATULATIONS!!!” Singer wrote in an email to Giannulli and Loughlin. “Please continue to keep hush hush till March.”
Loughlin emailed Singer about a month later to request guidance on how to complete the formal USC application in the wake of Olivia Jade’s acceptance as a recruited athlete.
“[Our younger daughter] has not submitted all her colleges [sic] apps and is confused on how to do so. I want to make sure she gets those in as I don’t want to call any attention to [her] with our little friend [at her high school]. Can you tell us how to proceed?”
Singer then directed an employee to submit the applications on behalf of Olivia Jade.
Loughlin and Giannulli were charged with conspiracy to commit fraud and honest services mail fraud, a charge that if convicted brings a sentence of up to 20 years in prison.
They now each face up to 40 years in prison and up to six years of supervised release if convicted of both charges.
For the first charge, they face a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. For the second charge, they face a fine of up to $500,000 or twice the value of the property involved in the money laundering. Arraignments haven't been scheduled as of yet.