It's not legal, but intentional misconduct can be tough to prove.
https://www.justice.gov/archives/opa/pr/professor-charged-op...
https://en.wikipedia.org/wiki/Eric_Poehlman
https://en.wikipedia.org/wiki/Scott_Reuben
> in every other industry that i can imagine
Our own industry (tech) is rife with unpunished fraud.
> intentional misconduct can be tough to prove
It's hard to prove when it isn't investigated. How many of the debunked psychology professors took federal funding? How many have been criminally investigated?
Note both those guys were found guilty for taking government money under false pretenses (to do with fake science, not for doing fake science, which is more supporting evidence that fake science is legal.