Freshmen, transfer students, and older students clep class credits every day in every university. It's not special. It's common. Your prior courses and life experiences can frequently get you credit for knowing the core of a classes curiculum.
I don't even like Bustamante. I'm just pointing out, to be fair, that this "scandal" is a non-issue.
Yes, courses can be waived. I had a basic English course waived by taking all my upper division classes first. BUT the chair who waived me through had me in multiple classes and graded probably 20 papers from me: he knew my writing.
The professor cannot remember details or speeches Bustamonte made. As a politician and directly involved with the CSU regents, it doesn't really pass the stink test. His high profile had the school neding over backwardsto accomodate his graduation.