You are in a catch-22 situation. If you are honest, there is a good chance it will negatively affect you, and if you omit the information and they find out it's probably automatic termination. If we are going by academic honesty and integrity, than you can put it in your app. They may even think you are a better person now because of it, who knows? Or, it will hurt you for trust reasons. I don't know it's hard. I wish I could give more insight, but I think go with your instinct on this.