Ferentz might also make him "earn" a starting spot and start him at practice as 5th string D-end. We've had our own problems with "allowing" the unworthy to rejoin the team after essentially no team punishment.
If this was a matter of cheating, there's no way the football team/coach could step in to make this go away. Ray Perkins was a highly touted RB/return man for the Hawks the year every RB on their roster blew their knee. I believe he was dismissed immediately when it was found he cheated. I believe cheating is the one thing that gets you the hook immediately, regardless of school.