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A similar situation has happened at USC. A certain frat, which I will not name, was given a suprise visit by their district advisors a few years ago. What the advisors found were gross amounts of alcohol use and some members using drugs. The advisors notified the fraternities alumni association, who coincidentally owned their house. The alumni association decided that they would not allow anyone to live in the frat house for 5 years or until all the current members had graduated. They are still allowed to do rush, though, and they still have exchanges and stuff. They are not formally recognized as a fraternity, but the knowledge that they will be back in 4 years kind of makes that fact ignored.
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