In a stunning reversal, a federal appeals court overturned the fraud and conspiracy convictions on Wednesday of two parents found guilty of participating in a far-reaching bribery scheme, known as Operation Varsity Blues, which ensnared dozens of wealthy parents who falsified their children’s credentials to gain admission to prestigious universities across the country. A three-judge panel of the U.S. Court of Appeals for the First Circuit in Massachusetts found that the lower court had made crucial missteps in the trial of Gamal Abdelaziz, a former casino executive, and John Wilson, a private equity financier. The court, however, upheld Mr. Wilson’s conviction on tax fraud. The appeals court made its decision largely on two technical legal grounds. First, it ruled that the lower court judge wrongly instructed the jury that admissions slots constituted property.

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