Sorry to stick my oar in here but, I would argue, that if you've lost your university place on the mere threat of being convicted, I would say that's compelling reason not to prosecute, assuming that the offer is to be formally withdrawn, with that communique coming on official Uni stationery?
The process and stress you've been through, and the loss of your future career would be more of enough of a lesson learnt, surely? I fully understand freedom pass misuse is serious, but does the above evidence put it into the realms of against the public interest, settle with an administration fee? After all, they've kinda got OP over barrel with regards to what they charge... and TfL will get all of it.