Apparently they coached their daughter to hide their actions from her school counselor.
"The crime Giannulli and Loughlin committed was serious," the government writes in the filing. "Over the course of two years, they engaged twice in Singer's fraudulent scheme. They involved both their daughters in the fraud, directing them to pose in staged photographs for use in fake athletic profiles and instructing one daughter how to conceal the scheme from her high school counselor."
The sentencing memo also adds new allegations that Giannulli and Loughlin spoke with their younger daughter, Olivia Jade, about how to deal with a high school counselor skeptical of her crew resume.
When she asked her parents whether she should list USC as her top choice, Loughlin replied, "Yes . . . . But it might be a flag for the weasel to meddle," according to the memo.
Giannulli cursed the counselor and remarked that he was a "nosey bastard," the memo states.
Don't say too much to that man," Loughlin said.
Prosecutors write that the evidence suggests Giannulli was the more active participant, while Loughlin took a less active role but was "fully complicit."
They call the Giannulli and Loughlin sentence request comparable to those imposed on similarly situated defendants.
Giannulli is scheduled to be sentenced Friday at 11 a.m., and Loughlin is expected to be sentenced later that afternoon.
Singer has pleaded guilty to racketeering conspiracy and other charges and is cooperating with federal prosecutors. He has not been sentenced yet.