"Obviously this is very concerning and we take these things very seriously," Smith told CBS News.
Mount Pleasant Police told the Times they are investigating the incident.
The national headquarters of Alpha Chi Rho said in a statement Friday that the charter for the fraternity had been revoked since 2011.
"Prior to this incident, when we learned that a small group of individuals had been improperly operating under our name, we promptly sent a letter to these men to stop all activity or representation of our fraternity," the fraternity said.
Students at the fraternity house told WDIV that the incident was a prank gone awry.
"It was just a joke trying to be funny and put it on his face," the unnamed student told WDIV. "We didn't know he was allergic. It was just college students being kids."
Teresa Seely filed a police report and hired an attorney after her son recently told her about the incident, according to WDIV.
Seely left the school after one semester.
Peanut butter rubbed on face of passed out CMU student with peanut allergy was 'just a joke' https://t.co/b3qrnUWTUx— Local 4 WDIV Detroit (@Local4News) March 2, 2017