Adults are adults. 18 year-olds who defraud the military face punishment (with due process). Nearly all universities take public money and should stop treating 18 year-olds like children who need to be coddled on publicly subsidized dime.

That being said, most such punishment records should generally be expunged once rehabilitation has been completed. We're all human and make mistakes, and only a pattern of misconduct should be permanently on record.