Expel the students and fire the professor. That will demonstrate their commitment to high ethical standards.
2. Something being grounds for expulsion and what a reasonable response would be are vastly different things.
3. The rules saying "up to and including" (aka grounds for) and the full range of punishment are not the same - the max of a range is not the entirety of the range.
4. So what?
You can’t make a silk purse out of a sow’s ear.