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The panel of judges upheld a federal district court's decision from last year, teeing up a possible case in front of the U.S. Supreme Court.
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Prosecutors told the court that they considered Douglas Hodge, the ex-CEO of PIMCO, among the "most culpable" of the parents charged. He has been sentenced to nine months in prison.
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A California high school is staging an original musical called Ranked, set in a world where class rank means everything, and some parents are willing to pay for their student to get a better spot.
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Actresses Felicity Huffman and Lori Loughlin are among 33 parents who paid large sums of money to cheat admissions standards at prestigious schools, federal prosecutors say.