Wow.
Not the first time a wealthy foreign student has discovered that daddy's money won't buy a pilot certificate in the US, but this is over the top.
When I was learning to fly there was a student who was some kind of African prince who did solo, but then violated all kinds of regulations (including, I'm told, flying under a bridge). Diplomatic immunity protected him from prosecution, but it didn't stop the flight school from kicking him out. What was really sad is that he had a roommate who was an ordinary citizen from the same country and a really nice guy, but he had to be subservient and grovel to this jerk.