It looks to me as two parties are worthy of comment here:-
Firstly did the regulators check his log books in detail or were the figures taken at face value? What else can they do when a guy presents himself at the front desk with apparently totally legal details of his flying career? More than likely they are totally blameless.
What is strange is that it has only just come to light. How did it actually surface?
Was the guy told to bring all his log books in for a "routine check"? Can't ever remember that happening where I work!