If that's true and they can prove it, that's full-on lack of institutional control due to negligence and lack of oversight. That's gotta be the banner, likely another year ban, and it's gotta be Pitino's job, likely a show cause, and certainly that's a wrap for Ramsey if he knew. We've covered the fact that it doesn't matter if Pitino knew, but I certainly think it's worse for him if he knew about a slush fund, even if he can claim ignorance on where the money was going. You don't give a glorified graduate assistant thousands of dollars to blow on recruits, not check up on it, or keep records of the spending, and then get off because he failed to tell you it was for whores.
That information would burn the program down.