not defending nor apologizing.

Just taking the position that it would be a dangerous precedent to set that all one would have to do to pull funding from a program one didn't want to see funded would be to indict someone within the organization.

I go a step further and say that even if someone within the organization is convicted, that would not automatically pull funding from the entire organization. It may be appropriate to eliminate the guilty party(s) from the organization and prosecute the individual.To pull funding would require due process, and in that due process, an assessment made as to how widespread the fraud was, and whether funding should continue or not.