You are right, he is quite stupid. He did get duped. He also lied about the relationship to embellish it in the media, which is not as bad as being in on it but not much better. Any ND fanboy (i.e. you) expecting this story to die a quick death is in for a rude awakening.
"The University of Illinois is also in turmoil. The university sports an Interim Chancellor, an Interim Athletic Director, and an Interim Football Coach; the game will be played at Soldier Field, making this an Illini Interim Home Game."