2. They didn’t “steal” anything from other applicants, since none of those applicants were legally entitled to admission to USC. USC admits less-qualified students with such boring regularity that the whole school would be subject to prosecution as a criminal enterprise if this constitutes “fraud.”
3. Neither is the two daughters failed out of school. By all accounts they were USC students in good standing. That means they were certainly worthy of admission, and you can’t say with any certainty that any rejected applicants who you deem to be “more capable” than them wouldn’t have failed out of school within one semester.

Mail fraud is punishable with up to twenty (20) years in prison, a fine, or both....A single act of wire fraud can result in fines and up to 20 years in prison. However, if the wire fraud scheme affects a financial institution or is connected to a presidentially declared disaster or emergency, the potential penalties are fines of up to $1,000,000 and up to 30 years in prison.
Not sure why you appear to want to excuse Loughlin.....but the facts do speak for themselves as well as the couple admitting their crime...which it was and remains a crime.