Lori Loughlin intends to plead not guilty in college entrance scam

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Loughlin and Giannulli are now facing charges of conspiracy to commit fraud and conspiracy to commit money laundering.

Actress Lori Loughlin and her fashion designer husband, Mossimo Giannulli, are pleading not guilty to charges they took part in the sweeping college admissions bribery scam, according to court documents filed Monday. She and her hubby are each facing 40 years in prison for the federal charges.

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Actress Lori Loughlin said on Monday she will plead not guilty to charges that she participated in what prosecutors say was the largest college admissions scandal uncovered in US history.

The couple was previously offered a plea agreement, but ultimately chose to reject the deal because they didn't want to spend time in jail, the source told PEOPLE last week.

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Several other indicted parents have also entered not guilty pleas, while fellow actor Felicity Huffman, who starred in ABC's Desperate Housewives and 12 other parents have agreed to plead guilty.

Huffman has agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud, saying, "I am in full acceptance of my guilt, and with deep regret and shame over what I have done, I accept full responsibility for my actions and will accept the consequences that stem from those actions". Loughlin and Giannulli have been accused of paying $500,000 to have their daughters Olivia Jade and Isabella Rose designated as recruits for the USC crew team, despite the fact that neither had ever played the sport.

Loughlin's representatives did not immediately respond to a request for comment by EW.

Lori Loughlin and husband Mossimo Giannulli have officially said "no way, Jose" to a plea deal. 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".

Loughlin, 54, and Giannulli, 55, could each get a maximum 20-year prison sentence if convicted.

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