Prosecutors said Singer's operation arranged for fake testers to take college admissions exams in place of his clients' children, and in some cases arranged for applicants to be listed as recruited athletes even if they had no athletic ability.
Authorities said parents paid the founder of the Edge College & Career Network approximately 25 million dollars to get their children into college. The children, generally, did not realize their admission was due to a bribe.
The payment to KWF, which was set up by accused scam ringleader William Singer, was allegedly made to participate in the college entrance exam cheating scheme on behalf of their eldest daughter Sofia Grace Macy.
Although both Huffman and Macy initially met with someone to discuss the scam, court documents show a number of phone calls and emails from Huffman alone about getting extra time on the SAT and correcting her answers.
Loughlin and her husband, fashion entrepreneur Mossimo Giannuli, allegedly paid $500,000 to have their two daughters designated as members of the USC rowing team, even though they did not row.
The man whom authorities allege is at the center of the scheme, William Rick Singer, appeared in a Boston federal courthouse Tuesday.
Huffman, Loughlin and dozens of wealthy executives and lawyers were charged with participating in a "large-scale, elaborate fraud" to create a "rigged system" at prominent colleges like Yale, USC, Stanford and UCLA, the Federal Bureau of Investigation said.
Huffman starred in ABC's "Desperate Housewives" and earned an Oscar nomination for her performance in the 2005 film Transamerica.
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He added, "For every student admitted through fraud, an honest, genuinely talented student was rejected".
Mr Lelling said it was the largest college admissions scam to be prosecuted by the Department of Justice.
Those arrested include two SAT/ACT administrators, one exam proctor, nine coaches at elite schools, one college administrator and 33 parents according to Andrew Lelling, the US Attorney for MA.
The scheme centered on the owner of a for-profit Newport Beach college admissions company that wealthy parents paid to help their children cheat on college entrance exams and to falsify athletic records of students to enable them to secure admission to elite schools, including UCLA, USC, Stanford, Yale and Georgetown, according to court records. She spent several hours in federal custody before appearing in court to hear her charges.
In many cases, the students were not aware that their parents had arranged for the cheating, prosecutors said, although in other cases they knowingly took part. The couple allegedly agreed to the plan. Parents who can afford to, pay heavily for test preparation and have their children take the tests two or three times to better their scores. A former Yale soccer coach reportedly pleaded guilty and helped build the case against others.
"You know I can't talk about that", he told reporters.
Shameless star Macy, who was in court for his wife's appearance, was spotted sitting among other defendants reading through legal documents.
Singer was paid roughly $25 million by parents to help their children get in to schools, the U.S. attorney said.