Jesus! Is that you? Either way, I feel for Seth. I read the entire thing and listened to the first recording: utterly absurd. At least Dr. Lorenz, whom I've met, had nothing to do with that unjust debacle. She's an awesome person and really sold me on the program while I was in town.
I've seen similar situations happen at several institutions. Any time an investigator leaves for any reason, it kills projects and hurts students. But that's where it usually ends, at the project level. There's no excuse for the ensuing administrative interactions with the student. To me, beyond the fiscal ethics, the interactions between administration and student were ethically bereft. That really does make me think twice if I receive an interview or reapply next year...thanks.