A source tells PEOPLE that Loughlin, 54, Giannulli, 55, and their daughters Olivia Jade, 19, and Isabella Rose, 20, are hunkered down at their house in Bel Air, California.
“The whole family is still laying low at their Bel Air home,” the source says. “Lori and Mossimo both have court dates in Boston next week. It’s still a very stressful time for them all.”
“They are living in the moment and that’s all they can do right now,” the source adds. “For them, this is all still a nightmare.”
Loughlin and Giannulli are among a list of 50 people who have been indicted as part of an alleged nationwide scheme, according to a release from the U.S. Attorney’s Office in Massachusetts.
“Dozens of individuals involved in a nationwide conspiracy that facilitated cheating on college entrance exams and the admission of students to elite universities as purported athletic recruits were arrested by federal agents in multiple states and charged in documents unsealed on March 12, 2019, in federal court in Boston,” the release said.
The indictment alleges the couple “agreed to pay bribes totaling $500,000 in exchange for having their two daughters designated as recruits to the USC crew team — despite the fact that they did not participate in crew — thereby facilitating their admission to USC.” (Neither Olivia or Isabella are listed on the USC women’s rowing roster.)
Both Loughlin and Giannulli were arrested last week on a felony charge of conspiracy to commit mail fraud and honest services mail fraud. They were released on $1 million bonds and have not entered pleas. Loughlin’s attorney has not returned PEOPLE’s requests for comment.
A source told PEOPLE last week that many of the couple’s friends have been distancing themselves from them.
“Lori and Mossimo are finding out quickly who their real friends are,” the insider said. “It’s not like they are the victims of a crime. They are the crime.”
“Many of their friends don’t want to be associated with them right now,” the source added. “Their friends are shocked at the allegations.”
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A second source told PEOPLE that those who know Loughlin were deeply upset to learn of her alleged involvement in the crime.
“Lori has always been a no nonsense, seemingly together woman who knows what she wants and goes for it with zest,” said the source. “She exudes both confidence and folksy charm at the same time. This issue is shocking and greatly saddens many people. I’ve heard she is devastated, and the whole family wants to hide from the world.”