First I have to say I think you are hearing a rumor spun WAyyyyyyyyyy out of control. This whole thing is starting to hit "Urban Legand" status here in PA.
I've heard a few things myself and they don't compare to that story. First off.....I'm pretty sure that the straight out illegal killing of a deer in PA carries a 3yr license revocation, so 5yrs for a "Mistake" seems a bit odd to me. (And Njbowman , yes you will lose hunting privilages for certain offenses first time or not)
As far as $2500?.......I would seriously doubt that as well.

From what I understand......and this could be just a rumor as well there are something like 3 cases in the state so far where after investigating the story it was determined that the kills were NOT a "Mistake".(From what I gather a person reporting a "Mistake" must fill out a sworn statement describing the entire hunt and the facts surrounding the kill are then checked out, and if deemed suspicious further investigation is neccessary) If a true mistake is made they take the antlers, fine you $25 and YOU GET TO KEEP THE MEAT. So I am left to assume that someone was willing to trade the $25 for a freezer full of meat because you don't get a new tag.
In the cases I heard of......and I repeat I have no way of verifying this.......the people were determined to have simply killed an "illegal" buck and hoped to simply pay their $25 and head to the butcher. These people were fined $500 and lost their privilages for 1yr. Thats the story I heard, and nothing more.