I'm not sure it matter whether is was a 'scam' or not.
The question is whether the presumptive 'students' had a right to remain in the USA or were they here illegally.
If they were here legally, then CPB and ICE would have no issue with them. They are visitors, and they are allowed to stay a certain period of time. If they have already over-stayed their visitor status, then they should go back regardless of their desire to find a school that would arrange a visa for them.
Of course this only makes sense if you believe that the USA has a moral right to limit access to the USA. If you believe that people who have over-stayed their visitor visas should be allowed to stay, then I'm sure you would consider any enforcement of the rules to be 'fraudulent'.
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