I just think there is a tendency to oversimplify.
When I was in school I had a professor who was well known that he didn't tend to fail anyone. Now, he was an excellent instructor, and he certainly didn't give everyone an "A" , but I knew classmates that didn't get the material and none failed (this was when grades were still posted on walls).
Again, the next year, I took a class that was a bit over my head. I did my best, but got an "A" not so much for my coursework but for my honesty in the "exit" interview, where I acknowledged that I just didn't have the mathematical background (I was a chem major) to quite "get" some of the material (the course was described as best for math majors, I thought it sounded interesting and took it).
Were these professors committing "fraud"? because they graded maybe a bit high? Was the rather loony Organic Chem professor that didn't give "A" grades because he didn't think any student was really good enough to deserve one a fraud?
My point is, and I have no idea, did the fraud at UNC extend to every student in a class, or only selected students. Or was the class a complete fake - in which case, I agree, the students need to be disciplined, all of them.
I personally believe there were numerous folks in the UNC administration who knew what was going on and I believe they all should be terminated and, where applicable, charged. As I believed with Penn State where there were fewer folks involved.
I also have no issue, incidentally, with athletic sanctions, although, we know that isn't happening. What I do have is a problem with someone saying that, if the situation is cleaned up as it (hopefully) will be, the school as an entity needs anything more than academic probation.