If fraud was committed, the right answer would be to sue the applicant in small claims court for the cost of the ticket. Canceling their flight was just a petty move.
The "right answer" would have been to simply reject the candidate if they didn't meet expectations for position and, if the fraud was truly egregious (and not just a guy trying to get a foot in the door for face-to-face), blacklist them within company from further consideration in the future.