I suspect, from a minor grammatical mistake in the posting that a native speaker would have been unlikely to have made, that the student IS an international student. And in this case, were the forgery not detected, the student is very likely to suffer significant harm. In any event, even if this school is not outside the US, the only correct response for forging a transcript is expulsion and prompt notification to all the colleges that received the transcript that a forgery has occurred, how it was permitted to happen, and what has been done to fix this so that it doesn’t happen again. This certainly does not seem to be the case, from what this student relates.
This is not, “Billy cheated on the first grade spelling test”. The student is right, that highly selective schools are unlikely to take more than one student from an overseas school, if they take one at all, and that every other student’s chances are torpedoed by that forged transcript, if it’s not caught. The students informed the school and were told to keep silent to protect the reputation of the school. They were not told that the school is doing anything to deal with what happened, and unless the OP literally just walked out of a meeting with the school an hour ago, and hasn’t yet heard through the grapevine that the perpetrator has been expelled, it seems pretty obvious that the school isn’t going to do anything, because they are more concerned about saving face than about integrity.