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I think that if an old and distinguished chapter got in trouble, the natl. could do things not involving the charter, such as giving alumni status to all of the undergrads who don't survive an interview, and recruiting all new members.
This is probably easier for fraternities.
It's very easy for the natl. to send a letter to all of the chapter's alums saying "the chapter members refused to meet the standards you and your brothers did as undergrads, and they had these serious violations, etc. etc., so we are reorganizing." The expelled undergrads have no way to tell their story - you can assume that the natl. wouldn't give the expelled guys a set of alumni address labels, and no $$$ to buy stamps.
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