This research had the potential to cause harm to people despite not being human research and was therefore ethically questionable at best. Because they presented the research as not posing potential harm to real people that means they lied to the IRB, which is grounds for dismissal and potential discreditation of all participants (their post-graduate degrees could be revoked by their original school or simply treated as invalid by the educational community at large). Discreditation is unlikely, but loss of tenure for something like this is not out of the question, which would effectively end the professor's career anyway.
I don't buy it, and you fail to back that claim up at all.
It seems very possible to me that an IRB wouldn't have accepted their proposed methodology if they hadn't received an exemption.