Something's missing from the story. He committed major fraud in a federal grant: where're the felony charges? People spend years in prison for this type of crime (e.g. [0-2]); so, something's off.
The Federal Register notice the OP is citing is probably this one: [3].
[0] http://www.albany.edu/~scifraud/data/sci_fraud_4952.html
[1] http://www.justice.gov/opa/pr/2011/November/11-crm-1547.html (hey that's Carmen Ortiz!)
[2] http://www.pennlive.com/midstate/index.ssf/2012/11/ex-psu_pr...
[3] https://www.federalregister.gov/articles/2013/12/23/2013-304...