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that is a tough one...on one hand if you really were being asked to do illegal stuff then of course thats a good reason to leave, but I might worry that perspective employers will think you are full of shit or just hyper-sensistive. Are you 100% sure that the stuff you saw was actually illegal?
This is a valid point. However, I think the time to consider that decision has already passed. In my opinion, OP, you'd be wise to put the internship on your resume and list it as a 1 month position (I.e., "Boutique Intern - June 2012"). List the work you did manage to do there and quantify it as well as possible.
What follows next is important: you don't have a viable internship for recruiting, and still need to find one. Try to work an internship during the school year, and prepare yourself for the possibility of recruiting season not working out for you. Begin considering your options in terms of graduation (delaying it by one semester, considering if a MSF is in the scope of viable options for you, etc.), and prepare yourself to work extra hard on networking.
Don't focus on damage control for the bad situation too much. You undeniably took a big hit to your recruitment potential; what's important now is to prevent this from snowballing into a more destructive gap.
Good luck.
I personally would've kept my mouth shut
Now you have no internship experience going into a TERRIBLE full time recruiting environment. Plus, future employers may see you as the whistleblower type, just imo
All else fails, you can do accounting/jr financial analyst roles then head to b school
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