I teach at a college, and if you were teaching at an accredited college, you could have had his job. Falsifying grades can get a college fined somewhere around $50,000. If it's proven that several people knew about it, the college can lose their accredidation. If that happens, it basically closes the college. No federal funding, no state funding, other colleges cannot accept courses by transfer. My college belongs to the Southern Association of Colleges and Schools. Most of the larger institutions belong to one of the associations. Falsifying of grades and attendance reports are some of the most serious offenses.
Also, most colleges have attendance policies, and if she did not attend classes, it would be a violation of school policy. It would probably also interest the entity that controls state funding for the college. They normally fund by contact hour, and if the funding is based on falsified records, that's called a felony.