If the FBI trial taught us anything, it's that cheating alone doesn't get you kids. Since everyone is cheating, cheating isn't what actually lands you the kid. Cheating is just clearing the bar to entry. It's the door cover charge at the club. The Gassnola/Self stuff was evidence enough of that.
What lands you the kid is the same as it always has been: relationships. Penny had awesome relationships with several important recruits: Wiseman, Jeffries, Baugh and Dandridge. #1 overall, a top 50, and another 2 top 100. All coached by Penny in AAU / high school or live in Memphis.
Staying and playing in Memphis is a rite of passage for Memphis kids. All 4 already mentioned, the Lawson brothers, Austin Nichols, Adonis Thomas, etc.
From that point on, it's a media talking point. Hurley tried to do the exact same thing with Kofi. He signed the 4* guards, then got Akok, then pitched to Kofi /Precious that they could be a part of something, a narrative. Penny has the advantage of being a narrative unto himself, and Miller also. Top talent brings scout eye balls. Narratives bring media eyeballs. You get both, you get a hype cycle. Hype cycles feed on themselves, and they attract other talent (Quinones, Tucker, Achiuwa, Watford, Ellis, Hampton, etc.) Then that talent goes to the NBA, so then you get a reputation for sending guys to the league. Then the cycle grows and rebuilds. It's the same model that Cal/K have used. The hardest part is getting started, but it's a lot easier when you've got 4 top 100s including #1 overall as locks because you coached them.