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I'm not surprised she was able to get away with this, including for the amount of time that she did. It's no secret that references/credentials often go unchecked for "higher up" positions as opposed to entry-level / middle management roles. This is very prevalent in the business world and I guess it does spill over into academia - which surprises me.
About 3-4 years ago, it was discovered that the CEO of Cessna Aircraft at that time had done something very similiar (he bought his degrees from one of those schools that spam your hotmail with those "degree for sale" emails).
At that level, I guess they depend upon "word of mouth"/networking moreso than anything else.
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"I don't know the key to success, but the key to failure is to try to please everyone."
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