Harmonia

If you assume they know everything you do not want them to know and nothing that you do you will not be far off.

Being an immigrant or visa holder one is in more systems that we can count. I suspect that even before they asked the question, the consulate already knew the answer.
This is why I am always so dumbfounded when people try to lie to the consular and then come on here asking for advice on how to 'undo' their lies.
OP - I am sorry that this happened but it sounds like it was the right decision. I am happy that they are leaving you room to sort this out.
Good luck

This is the worst advice ever. You do NOT WALK AROUND with your passport 24/7. That's how it gets lost or stolen and then someone else uses it... When you travel abroad YOU DO NOT walk around with your passport. That's why most hotels offer safe deposit boxes for your passport... There is no law that tells you to carry around your passport so you can lose it and give it to someone who will use it for really bad stuff.
She can travel on her US ID without any issues.

Gee folks. Started with really bad answers. Thank goodness the regular posters came on with real answers.
This is a domestic flight. Hawaii is a US state. No one is leaving the US. There is no CBP for domestic flights.
OP's wife is here legally. She can travel through all 50 states and other US territories.
All she needs is a valid ID to fly. She has a state ID.
There is no problem.

Based on my personal experience, the interviewer did not care about our "story", he only wanted documentation, specifically, financial co-mingling documents, our interview lasted about 10 minutes.
If you do not plan to initiate AOS until about 2 years from now, you can take the suggestions offered here and implement them. You will find some of the pieces very easy to do, and are one-off annoyances e.g. adding each other to insurance is easy, and as long as you pay your premiums, there's nothing else to be done.
Just curious, have you considered that if you become a LPR, your tuition at uni could be reduced? My understanding is that international student tuition is generally much higher.
Cheers

That's the point with my post though, they don't need to worry about their lack of a big white wedding, it's the lack of co-mingling of finances that they should worry about and do something about. Since they're doing AOS, OP needs to do it the American way and there, joint accounts and co-mingling of finances are very common. Different countries have different cultures and setups though, so just because someone isn't co-mingling finances it doesn't mean they're not in a real relationship. In Sweden, for example, co-mingling of finances is very uncommon, usually one person is on the electric bill and the other on the water bill. You won't usually have both people on the same utility bill. And joint bank accounts!!! I don't know anyone in Sweden who has a joint bank account. That's why a city hall wedding with no family attending is not even a blip on the radar at the US embassy in e.g. Germany but anything short of a big traditional wedding in India will have the US Embassy in India launching a full on investigation whether this is a real marriage or not (yes it's a little dramatic exaggeration ) ... Tradition and culture of the country where the interview will take place do play a huge role in what kind of evidence to present, how much evidence and how the interview unfolds, whether you're doing a CR/IR-1, a K-1 or AOS.

It's great that you are thinking ahead!
Here's another suggestion: get a plastic folder of some sort (like an expanding file folder). Put a BIG label on it "I-130" or, in my case, "I-751". Keep it in a place in your house/apartment that is easy to see.
Every time you do something together with your spouse that has "evidence" (hotel receipts, wedding invitations with both your names, boarding passes, movie tickets, jointly addressed mail (like Christmas cards or bills), joint statements, car stuff), put it in the folder! Don't worry about organizing it - just collect the stuff!
You will not believe how much easier it will make your submission. And...it is really good to have evidence from the date you married - so start building your file!
Good luck!
Sukie in NY

Okay so 'fair to him to walk away from the situation'... but the way Im reading it he didnt walk away. He said 'You should have seen her look when she opened her letter last night' and referenced the children crying.
That to me reads as if they are all still living together... I mean is it just me or am I inferring too much?
So thats not walking away. Thats not finding out you were the victim of a scam and closing the chapter and moving on/filing for divorce etc. Thats him taking a passive aggressive approach. Thats him basically saying I choose to stand here and do nothing and let things fall apart/play out all around me. My unsolicited advice- drop the passive part.

Your question is more complicated then a simple yes/no answer. Mostly because you are mixing terminology that doesnt go together. There is no 751 waiver for marriage fraud. There are waivers for widow (N/A here), extreme hardship (very difficult and probably N/A here) divorce or abuse.
Assuming the letter she got referenced in this thread was the 'first' denial and not the final ruling by the court- she has the option to appeal. She could theoretically appeal as a joint petition but it wouldnt go anywhere because he is not cooperating. So she would most likely convert to a waiver in the appeal process. She would be left to choose from divorce or abuse. (Yes I know there was no abuse but that doesnt stop scammers from fabricating it to use the waiver-it happens often).
So she would have her new filing grounds- then she would have to overcome the reason for the denial. If it was simply not meeting the joint requirements (him not showing up) then that hurdle is overcome with the waiver. If she was denied for failing to prove bonafides she would have an opportunity to present new evidence in the court of the bonafides as well as have the court re-evaluate the stuff she already submitted. If she was denied due to fraud/suspicion of fraud- she would then have the chance to overcome it in the court. That would make her case insanely more difficult and she would need a good lawyer but it is possible.
OP said his wife committed fraud and I believe he referred to evidence he submitted showing that but (unless I missed it again) he didnt list out specifics of what he sent. Proving fraud to USCIS is very difficult. There are numerous posts in this subsection of people attempting to do so. Most if not nearly all of users who post about it are unsuccessful.
With out reviewing what the OP sent in Im inclined to assume and work with the odds rather then against them (that it wasnt sufficient). There are a few other factors that make me assume there was no finding of fraud. The OP also started this thread by saying the denial stated due to your spouses not appearing at the joint interview you are denied. No mention of failing to produce bonafides or fraud. The OP also states he was requested for the interview twice and declined. So that means any possible finding of fraud would be based solely on the written evidence he submitted. Evidence, no matter what kind or why, is evaluated on its merits. His failing to appear and verify his claims in person could have worked against him. (He could have went to the interview and stated he was withdrawing from the joint petition and asserted his fraud claim- simply showing up does not equal participation in the joint filing)
Since he did not appear (twice) and the petition was denied they are not going to be calling on him to talk to them again any time soon. Unless the issue of fraud comes up again on the waiver filing- then they may attempt to speak with him at that point. He could pro-actively try to speak with FDNS (theres a thread Brian made about that) but again with out knowing the specifics of his evidence its hard to say if that will be fruitful.
Its my understanding from reading this that the OP had/has misconceptions about the process. He felt he could apply jointly and refuse to go and it would cause a denial. Yes, it does and it seems to have 'did' in this case but thats not the end of the road. USCIS has safeguards in place to protect immigrants. No one can hold someones status over them. One can not be malicious or spiteful and back the other person into a corner because everything depends on them. (not at all saying this was the case here). But if the system didnt have safeguards people could do that. So it does.
If a spouse was able to block all further avenues from the other by simply filing for joint ROC and not appearing- well... there would be tons of threads from bitter spouses following that path. Well lets just stay married honey, lets file joint, and then oops Im not going- you are out of luck.
As for the kids- you can check various sources including the K2 guide on VJ-
K-2's Status and Rights Post-Adjustment A K-2's status is entirely dependent on the K-1's status. If the K-1 doesn't marry the US citizen petitioner then neither the K-1 nor the K-2 can adjust status. If the K-1's AOS is denied then the K-2's AOS is automatically denied. K-2's are conditional residents for the first two years, just like K-1's. K-2's need to apply for removal of conditions just like K-1's. If a K-1's removal of conditions is denied then the K-2's is denied, as well.
There are some exceptions to the above. A K-2 can't apply for US citizenship after three years, while a K-1 who remains married to the US citizen can. A K-2 has to wait five years, just like most other LPR's.
Once a K-2 successfully removes conditions then their status is no longer dependent on the K-1 parent's status.
So its really an all or nothing situation- which is incredibly sad because as stated OP does care for the kids. I would also echo the concerns about the joint biological child they share. Family court does not care about immigration status. Many users here have been there/done that. The only positive is the mother does seem to want the very best for all her kids- so there is a strong chance she gives the dad custody and allows the child to live in the US even if she has to leave.

I don't see the joy in all this a child will be separated for miles from its mother. We only heard one side of the story.

OP has never said what he would do with the kids when mom's ROC was denied.
Did OP file for ROC for the kids? If not, then they will losing their green cards as well.
Stepparent adoption is not going to work when OP has alledged marriage fraud.

Get joint health insurance, renter's insurance, car insurance, get on the lease together. Open a joint savings account if you want to maintain your own separate accounts. Joint gym membership. Joint utilities. I see you're in MA. We are too, and my husband (the immigrant) is definitely a hipster. He has the man bun to prove it. But you still have to play the game and follow the rules!
My husband and I were married in the hallway of a jail (no, neither of us were in jail) by a civil magistrate. We wore clothes we already owned, and we bothered to take a few photos because we knew we'd need them. Then we went out to a bar with a few friends after. Very low key. Ok, maybe you didn't know to take pictures at your wedding, but still...now you know. Take steps to prepare. Read the instructions for the I-130, and follow them.

Do what is required to jump through USCIS's hoops. Why put yourself in a corner voluntarily and then hope you have the opportunity to explain your way out (instead of a straight up denial)? Read the guides with the evidence to provide. Take pictures. Go to a movie or concert together and save the ticket stubs. Etc etc etc

Her case is far from over, she still can divorce you and file form I-751 waiver.
If she decides to file form I-751 waiver and her I-751 waiver is denied then her case will be reviewed by an Immigration Judge, and the chances to have her GC approved with the Court is much better than with USCIS . She can fight for YEARS with the Immigration Court, BIA and Federal Court.
Do not celebrate because she still can renew her GC. I have many successful stories with the Immigration Court.

This thread is very disturbing to me. You seem delighted at what's happened, yet you're taking care of her children. Do you not care for them at all? They seem like innocent pawns. Clearly their mother is not taking care of them. Why didn't you spend your effort to adopt them? Or get the state involved to take custody? A mother who abandons her children and sees them 45 min. a week is unfit!
Getting her deported, that's one thing. But there's children involved who you've taken care of at least for 2 years. Its hard to understand how you could make that sacrifice and then just throw them away with a crazy mother?
I say this as a woman with no children. It kind of broke my heart to read about your gleeful plan!
Don't you feel any responsibility for the kids at all? They are still legal permanent residents and entitled to Children and Family/Social Services support!! That may be best for them.
I see that you have a daughter in common with your soon to be ex wife? I hope you fight for custody of her, at the very least! But it will be traumatizing to her when her siblings get deported to live with a clearly unfit and absent mother. Those are her siblings for life. Think about how your daughter will feel when she's 18 and in touch with her siblings via Facebook or whatever the latest social network is, and they're all mad at you for abandoning and deporting the other girls.
TL/DR: If I were you, I wouldn't be posting personal details online. I'd get a good family and immigration lawyer to figure out how to move forward. See if you can terminate your wife's parental rights to your daughter in common. Her rights do NOT disappear if she is deported. And there are plenty of horror stories of international child abduction at the hands of a parent.

I am shocked....some people need to grow up. Maybe you allowed yourself to be a victim.

All immediate relatives can be adjusted in such a way. Immediate relative = spouse of a US citizen, parent of a US citizen (of a child at least 21), minor child of a US citizen (under 21), or widow/er of a US citizen (that died within the previous two years).
With regards to the OP, he can send the I-130 immediately after the oath ceremony, since he can use a photocopy of his naturalisation certificate to prove his US citizenship.
Given that an I-485 plus other supporting documents would also be required then it makes no real sense to send the I-130 so quickly or by itself, unless the I-130 is the last thing you are waiting on.

I don't have advice other than contact a lawyer. This is beyond DIY at this point. You can do a consultation over the phone with any lawyer because immigration is federal. You need a US immigration lawyer, not a Philippines lawyer. A Filipino-based lawyer can't do anything with US immigration.
I actually believe your wife's story. This was 10 years ago. How old was she? Assuming late teens/early 20s if she wanted to come to the US for college. Most Americans are naive at that point, let alone someone who is from a different country. I did my husband's entire I-130 and other paperwork. He just signed on the dotted line, so to speak. I find it entirely reasonable that a scammer could forge a K-1 package.
This kind of smells like human trafficking. My spidey senses are up. We can't forget that there are many, many human trafficking victims who get tricked to coming to the US under the guise of studying or working as a secretary or model. Then they get here and are forced into the sex trade or forced to do slave labor with little or no pay. There's also cases where someone marries an immigrant for human trafficking.
The fact your wife was open about wanting to study, and didn't know about marriage, does make me concerned the original petitioner was looking for naive Filipinas to bring to the US.

That is a prime strategy of abusive people. Conscientious but naive and gullible people will knock themselves out trying to fix things when it isn't within their power to change an abusive person.
They'll string you along with empty promises and then a pretense of improving when they figure it will manipulate you into staying. Having you exhausted, broken, and weak makes you easier to control, and fall for their bullshit.
So the first thing is to get your mind right about leaving, the decision itself removing 90% of the anguish in your mind. Because the future is suddenly so clear. The steps seem so much less intimidating and the fear fades away. Sandranj has it right, that the most dangerous time is a victim telling the abuser all her plans to leave him. It isn't just that this is the time violence is the most likely, but they pull out all of the emotional stops too, everything from begging on their knees to threatening what you hold dear. Guilt-tripping, victim-playing, shaming, inappropriate anger, the works.
The point is to free yourself from it. Her advice here is really the best to follow.

And who might you be judging someone like this?
Do you know this person personally? or you are just bitter by default?.
That is supposed to be somebody's wife for Gods sake, if you cannot focus on the subject matter without being judgemental & razz, just read his post and keep moving instead of exposing your natural bitterness on a public platform.

The OP has been very open about the story so far. Your criticism isn't very helpful and in fact contradicts the facts listed and normal logic. Why would a young woman contradict something in the interview that she created in the letter of intent? Answer: the boy in question forged the letter of intent. Her answers in the interview do indeed seem to indicate no intent of fraud. The OP has visited his now-wife 3 times. I'm going to say that he knows her far better than your illogical armchair analysis.

Annulment is predominantly a VJ issue. Not something you come across very often in the real world.
Just wondering what the evidence is, not mentioned.

You were married for 2 years and never consummated the marriage? You didn't think that was a red flag of sort?

If the denial was based on his tattoos,then removing it makes no difference cos the IO understands the meaning of it better than your spouse. All you have to proof to them is that he is of good behavior and have some relative write an affidavit on his behalf indicating his a good person

they are already aware of the tattoo, so removing it won't change the fact they think he is affiliated with a gang.