There have been many students caught cheating with Internet-essays. Universities are only now beginning to keep track of these numbers. Involving the institution's administration in a disciplinary matter would ruin a student's academic career and many instructors are simply not willing to take discipline to that extreme. As with so many issues of the law and the Net, there is no clear answer to this question. In the USA, several states have laws that make this activity illegal.
Enforcement is the real issue.
We make it our business to know as much about this as possible. Email us to request an interview. He is outspoken on the issue and sees the government as being at fault for failing to support the education system. He created Ivy Essays, which is targeted at people writing application essays. So many reporters neglect this key player.