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And happily cashes their tuition..
It's like they want to prove that no crimes committed while on federal payroll can ever get you prison time.
Can someone explain how is this even legal ? Isn't this entrapment ? And what's the objective of this sting operation anyways ?

It's not like students on F1 Visa know what is legal and what isn't, especially with US immigration laws being so complex. They usually rely on the grad school Visa office to tell them if they're allowed to do something like where they can work and what paperwork needs to be filed.

Instead of doing the actual work of publishing clear rules, explaining the law, inspecting universities and ensuring compliance, DHS ruined students lives after they took their money.

What's egregious is they even got fake accredition.

That said, I think the people who signed up should have suspected a fake university given there were no actual classes. These people were probably merely looking to maintain legal immigration status without actually doing the needful work.