So potentially the SFI, HoT and the TRE as well as any involved 'student' will/should face criminal proceedings now in addition to losing their licences?
Probably, yes. In another article the LBA is said to be examining if this could be a case of endangering air traffic, which is a felony in Germany. So, if this goes far enough, the persons involved would not only loose their qualifications (= the type ratings in question, for sure, and certainly also the instructors' and examiners' qualifications / authorizations) but also face criminal charges. Their career in aviation would come to an abrupt stop.
If they spend the money they saved on their ratings for a good aviation lawyer, they have realistic chances of keeping their licenses - a very good aviation lawyer might even preserve their typeratings.
You never know, of course, but I doubt it Knowing this business a bit and having seen a hand full of, let's say, 'colorful' individuals, I wouldn't be surprised if there was a place for them somewhere on this wonderful planet...
Seems like a good time to get a (genuine) BD700 type rating as quite a few positions will be vacant in the very near future.
There you go! That's the Spirit.