We recently had a similar situation in my chapter. A brother did something that was morally reprehensible. Charges were filed. Our chapter advisor had some interesting and helpful advice though.
He pointed out what a slippery slope it can be when you start to punish members for things that they do in their personal lives.
Given the facts presented in the article (which I'm relatively sure there's another side to the story) I'd conclude that this brother does not have a very good understanding of honor. He is refusing through moral relativism to take responsability for his actions.
I couldn't say what should be done without knowing all sides of the story though, that wouldn't be fair.
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SN -SINCE 1869-
"EXCELLING WITH HONOR"
S N E T T
Mu Tau 5, Central Oklahoma
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