It's Title IX, not Title IV. Regulations require the schools to investigate and take action on their own, regardless of what the police decide to do. Because it is a civil proceeding, the full rights of the accused do not apply like in a criminal setting. Here is a really good article on the matter. http://usatoday30.usatoday.com/news/nation/story/2012-04-21/title-ix-campus-sexual-violence/54456812/1
Your friend has the right to appeal through the school's administrative appeals process and should exercise that right. The process is set forth in the Student Handbook, and is published on-line. The Dean's office can provide a hard copy. Your friend needs to study the process carefully and comply with all of the specific rules and regulations, especially the time limits. Failure to meet time limits will cause a forfeiture of appeal rights.
Your friend is entitled to the assistance of counsel for this process and should fully utilize that right. These are difficult cases and the process does NOT provide a level playing field. But there can be no school disciplinary action without affirmative evidence, so if your statement is correct that there is no evidence here, then your friend may have a sound appeal.
The consequences of dismissal from college or university are vast, long-range, and can affect the student's future for many years. There is a shut-out of 2 years for student financial aid, ineligibility for transferring to other schools; ineligibility for graduate and professional school admission, and for required internships and externships. There are post-education employment disabilities and also exclusions from athletics, scholarships, military, state licensing and other aspects of professional life. If this charge can be successfully appealed, your friend needs to find the financial resources to make that effort.
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