It's true that the kids who did not know about the wrong that granted them admission should not be viewed as morally culpable and should not be "punished". But

It's true that the kids who did not know about the wrong that granted them admission should not be viewed as morally culpable and should not be "punished". But to suggest that they should still be allowed to benefit from fraud isn't the right answer either. Ill-got admission or degrees should be revoked. Insofar as those rewards of fraud should be revoked, and the kids unaware, the students are themselves victims of their parents along with those others that were defrauded; that they would be harmed by the fraud of their parents shouldn't be surprising to them or anyone else. (They are, after all, adults). Those still in school should be expelled on some sort of "no fault" basis. They could then be allowed to reapply and demonstrate that they really belong there on their own merits. For those already with degrees, it's less clear and I don't have a good answer; I don't see any way out that either prevents the fraud from succeeding in it's goal (untenable) or is overtly punitive towards the student (also untenable)... the only real answer there is revoke the degree and tell the student/victim to seek redress from the ones that committed fraud (their parents).