SPOKANE, Wash. - Eight people have been indicted by a federal grand jury, accused of operating a huge diploma mill that could have helped foreigners illegally enter the United States, U.S. Attorney James A. McDevitt said.

Thousands of fraudulent high school and college diplomas were sold to people around the world, generating more than $1 million in sales, McDevitt said Wednesday.

The eight have not been arrested, and have a court appearance scheduled for Oct. 27, Assistant U.S. Attorney Tom Rice said.

In court documents filed in August, federal officials said half the degrees were sold overseas, a majority to "students" from Saudi Arabia. Foreigners who purchased the degrees could be eligible for "H1-B" visas, using their educational background as a reason for legitimate entry into the United States, court documents said.

The indictments charged the eight with conspiracy to commit mail fraud and wire fraud.

According to the indictment, the defendants include Dixie Ellen Randock, Steven Karl Randock, Sr., Blake Allan Carlson, Heidi Kae Lorhan, Amy Leann Hensley, Roberta Lynn Markishtum and Kenneth Wade Pearson, all of the Spokane area.

None were listed in the telephone book and attorney Philip Wetzel, who represents several, did not immediately return a telephone message late Wednesday.

The eighth defendant, Richard John Novak, of Peoria, Ariz., worked as a "consultant" to process the fraudulent degrees sold to foreign consumers, the indictment said.

The indictment contended that Dixie Ellen Randock and Steven Karl Randock, Sr., who live in Colbert, just north of Spokane, owned the institutions identified in the documents as "Saint Regis University," "Robertstown University," "James Monroe University," "James Monroe University High School" and "Trinity Christian School."

The indictment said that customers would pay between $399 and $2,454 to access a Web site and be evaluated for a degree by Heidi Kae Lorhan, a high school dropout, and Amy Leann Hensley.

A consumer could also access a Web site and take a 125-question test, answer only 25 percent of the questions correctly, and be awarded a high school diploma, the court documents alleged.

The degrees and related documents would then be printed and shipped, the indictment said.

Spokane businessman Blake Allan Carlson manufactured fraudulent rubber stamps and seals to make the documents appear authentic, and Spokane resident Kenneth Wade Pearson maintained several of the Web sites, the indictment said.

Roberta Lynn Markishtum, of Mead, Wash., allegedly printed some of the fraudulent documents and falsely confirmed via telephone to employers and potential employers that the degrees were valid, the indictment said.

A undercover Secret Service agent posing as a retired Syrian military officer who wanted to quickly obtain an H1-B visa was able to purchase from "James Monroe University" degrees in chemistry and environmental engineering, the indictment said.

The Randocks were also charged with conspiring to launder $1.02 million as a result of the diploma mill scheme.

If convicted of the wire and mail fraud conspiracy counts, each defendant could be sentenced to a maximum five years in prison, a $250,000 fine, three years of supervised release and the payment of restitution.

If convicted of money laundering conspiracy, the Randocks could be sentenced to a maximum 20 years in prison, a $500,000 fine or twice the amount of money laundered, plus five years of supervised release.