It seems to me that you were out of status not because of the extra hours that you put in but because of the reduced course load that you took this semester. If the DSO is already in trouble with fraud cases, then it might help your case, but in any case the burden is on you: innocence is no excuse. Like others have said before, explain your situation to your supervisor, faculty, the Dean, and the President. They could help you more than anyone else. It also seems like you will probably need to consult a lawyer too. Other people might have more idea on how to get a lawyer. 

Good luck with your case, and hope everything turns out good!