JEL Dilemma #1 - When a top student is caught cheating

After a series of allegations and thorough investigation a prizewinning student on the cusp of graduation has admitted to cheating. What should the school’s response be? Would it make a difference if the information were publicly known or a secret acknowledged by only a few? What would the response be if it were discovered that the student did not cheat for himself but that he was helping another student who was struggling because a family crisis was interfering with his performance?