Loughlin and her husband, Mossimo Giannulli, are among the many who were indicted after they allegedly paid $500,000 to a fake charity to have their daughters Isabella Rose and Olivia Jade Giannulli accepted into the University of Southern California as recruits into the women's rowing team.
Loughlin and Giannulli said in the court documents that they waived their right to appear in Boston federal court for their arraignment and plead not guilty to the two charges against them.
To make matters worse, Lori and Mossimo are among 16 parents who have been charged - in a second, superseding indictment - with one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud, and one count of conspiracy to commit money laundering.
On Tuesday, both of them along with 14 other parents were accused of money laundering conspiracy. If convicted, the pair will face up to 40 years in prison. Although, most experts agree that the chance of sentencing that severe is nearly nonexistent.
A source close to the actress tells People, "it's just taking some time for it to sink in that what she was allegedly doing could be considered illegal".
The news comes weeks after the network's parent company Crown Media cut all ties with the personality due to her ongoing legal trouble. "It wasn't until she was faced with [the] additional [charge] that she saw the true ramifications".
The parents are accused of paying admissions consultant Rick Singer to rig standardized test scores and bribe college coaches and other insiders to get their children into selective schools.
Loughlin, who was indicted last month in connection with a bribery scheme in which rich parents paid big bucks to get their kids into elite schools, was sacked by Hallmark soon after the scandal hit, and the show took a break to explore its "creative options".
According to a different source who spoke with People, Lori Loughlin was reluctant to plead guilty, in part, because of the effect it might have on her family.
A federal judge will have the final say on Huffman's sentence but prosecutors will recommend incarceration at the "low end" of the sentencing range, a $20,000 fine and 12 months of supervised release, according to a plea agreement.
Adding that her daughter majored in Communications, she said, "Yeah, and you know what her job is now?" This transgression toward her and the public I will carry for the rest of my life, ' she said after her plea deal was announced. "My urge to help my daughter is no excuse to violate the law or engage in dishonesty", she explained following her plea deal was announced.