When I was at Dartmouth we had a very strict Honor Code. Students were required to report cheating too, or face complicity charges.
Cheating like this would lead to expulsion except in rare circumstances. Not saying if Daddy buying a building would qualify.
Those kids are taking up seats of kids who want an education but didn't get in. The filter is thirsty.
At a minimum the cheaters devalue the market demand for an institution's degree. If these kids get a diploma we shouldn't hire from that school.
It's worth noting that Princeton just abolished its Honor Code due to rampant cheating of this type. After 130 years. This isn't the Second Industrial Revolution, it's much worse.
Also, that professor is a legend for pointing out the Emperor's lack of clothing.