Story still very much alive. They had a piece about this on CNN this morning.
Apparently he keeps saying he didn't know anything about this and really loved this girl (he never met), and that she "died" in September, and then she called him in December and said she faked her own death because of some drug dealers, and that's when he got suspicious and told the Notre Dame management about it and they started investigating. Hmm...
Well, it's certainly more inventive then 'the dog ate my homework', but about as believable mind you.