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Would it be a bad option for the OP to register her concerns (since she has no hard proof and to go after some is very tricky as stated earlier) with a 'higher up' within her university. That way, she has expressed her concern and explained the potential repercussions this may have for her university/campus in a decisive way.
I still believe her duty and obligation is to her university first. That is the role she was serving when they hired her. And let's remember, she brought up her concerns about this lady's dual membership at the time and was pooh poohed.
So, why not take it a step further but one that lets her soothe her ethical feathers and also closes the door as far as her obligations. If there is ever a problem with the dean, and they turn around and start looking for people to blame, the OP has Covered Her A**.
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