Ben, it has been confirmed from multiple sources now beyond just that Powell woman that several parties involving recruits, players, strippers, and at least one pay-for-sex arrangement occurred in an on-campus dorm possibly using Louisville athletic department funds (they are still investigating the paper money trail though I'm guessing will have a very hard time figuring that out if McGee stays quiet as presumably everything was done in cash).
The general perception out there seems to be that Louisville is definitely going to get hammered. Post-season ban(s), scholarship reductions, and game suspensions for Pitino.
Many people have opined that while probably Pitino never explicitly told McGee to do what he did, it was very unlikely that the entire Louisville coaching staff was totally ignorant of what was going on. You are talking about something that was involving numerous people and located at an on-campus athletic dorm with university security and monitoring (it isn't like a bunch of strippers can just walk into a university athletic dorm as part of a big party without anyone noticing). Plus, on the last day of a recruit's visit, a coaching staff almost always meets again with the recruit as well as talks afterwards to whomever they assigned to host the recruit to see how things went during the visit. And finally, there is the question again of where the money was coming from that paid for everything.
Pitino may very well get by with a 'I didn't ask, they didn't tell' defense in terms of continuing to coach at Louisville, but he isn't going to get off totally free either. Looks like some punishments are coming.