Hey wptw!
Nice to see you coming out of lurkdom for a bit
I have no doubt that you know what you're talking about and you're probably right that about the morally correct vs. legally correct thing.
But I am pretty sure that when I was initiated I signed an agreement to the effect that the Badge belongs to the sorority and is on loan to me. (granted, that happened many, many moons ago so my memory may be faulty!) But if I did sign an agreement like that, wouldn't that have legal ramifications?