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Actually, if they changed their letters and were closed by the national, the national organization will probably want nothing to do with them. I have no idea what money would have to do with this.
The school is private--is there something in the student code of conduct that would help you out? Sometimes private schools have policies against joining unrecognized campus organizations?
There are definitely some liability issues for your school if you do not confront this issue because if something happens, even the school no longer recognizes the org, someone's parents will be upset. Consult the school's legal counsel for advice.
Someone suggested making statements re: the two groups' statuses, and I think in your situation that may help. Perhaps something in the school paper.
Also, support the groups that you do recognize. Help them beef up their recruitment efforts and make it apparent that the groups that play nice are going to be rewarded.
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