That's what I think is happening. I think prosecutors will put the pressure on the kids in order to force the hands of the parents, who will, likely, be willing to take sentencing to spare the children.
FWIW, I think the kids aren't legally responsible, even if they knew about the scheme. Yes, they should have declined the scam and are morally responsible for going along with the fraud, but parents are obviously a HUGE authority figure in anyone's life and are in the position of power in the relationship. I don't think the kids should be held legally responsible. What to do with them in college - kick them or or let them stay - I don't know.
jmo