I definitely don't think he couldn't and it's my understanding that he just wouldn't travel to recruit. That doesn't mean he didn't sit down with recruits once they were on campus.
I think that whole thing is a little overblown, I mean he's still John Chavis, name recognition still goes a long way. High school seniors these days still have respect for that man. He's one of the best DC's, probably ever, in college football.
Not sayin we should or shouldn't have offered the guy though. I was as sick of 3rd and Chavis as anyone else.