Everton have received a two-year transfer ban on signing academy players.
A Premier League investigation saw the Blues also hit with a £500,000 fine after they were found guilty of tapping up a former Cardiff City schoolboy.
Long-standing head of academy recruitment Martin Waldron was suspended by Everton in September in line with its own internal probe into the matter.
The findings by Goodison Park officials uncovered further instances of misconduct connected to the recruitment of six other academy players.
Waldron was accused of approaching the player, who was 11 or 12 at the time, and his family about a move to Everton but he did not agree to join the club.
Although the boy later signed for Manchester United, the offer of financial incentives including a rented house and monthly allowance breached regulations.
A Premier League statement read: “The Premier League received evidence alleging that Everton academy staff offered inducements to a player and his family to encourage the player to register with the club.
“When presented with this information, Everton immediately admitted the allegations and set up its own internal inquiry which established that similar misconduct had occurred in relation to six other academy players.
“In certain cases, it was found that the club provided false information to the league when questions had previously been raised about the circumstances in which academy players registered with the club.
“The club will [as well as the fine and ban] also pay additional compensation payments to the former clubs of two academy players.”
Everton have become the third top-flight club to receive such sanctions over illegal approaches, following the sentencing of Manchester City and Liverpool.
Both teams were given two-year academy bans, preventing the signings of players between 10 and 18 years old, with the second year under suspension.
However Everton will not be afforded a similar reprieve due to the severity of the case.
“Everton has worked alongside the Premier League over recent weeks to conduct a full and thorough investigation into allegations relating to our academy’s operational methods in some areas of player recruitment,” read a club statement.
“In short, we are extremely disappointed with some of the practices we have found which are not in line with our values and not acceptable to Everton Football club.
“Accordingly, we have accepted the penalties imposed on us by the Premier League and have given them our strongest apologies.
“We have already commenced a full review of our academy operations and are committed to ensuring that issues like this do not happen again at Everton.”