Can't blame UNI here. It isn't their fault that one of their alums ended up being a sleazy thief.
(1) UNI has experience dealing with donors who practice questionable accounting. The namesake of their basketball arena was the subject of countless lawsuits involving questionable money management (I know this is true because I was personally involved in a couple of them...).
(2) Based on previous comments of the UNI AD, which UNI fans assured us was entirely accurate, we know that the athletic department "is in a better position than it ever has been", so returning the donations shouldn't present any financial hardship. We can assume that UNI will just cut a check now and avoid all of the clawback suits and claims by the bankruptcy trustee since they are so flush with cash. After all, a lot of innocent people have lost a lot of money here and UNI doesn't want to gain at their expense. Certainly UNI will do the right thing and return all of the stolen funds that they have received.
(3) Locals aren't really UNI fans or boosters, so all of the money those people lost investing with the crook, along with all of the high paying jobs his company provided, won't have a big impact on UNI going forward.
I'm sure that UNI will work expeditiously to remove all signage/advertising of the now defunct company from the arena and campus. In fact, I assume that has already been done, right?
What I don't know, but have been waiting patiently to find out, is if this crook is a member of the donor circle that donates the funds for Jacobson's salary. If so, could Jacobson be subject to clawback suits/bankruptcy trustee claims as well? How aggressive are bankruptcy trustees in Iowa?