How does AKC ask that you prove the dog is spayed or neutered? I took a look at the application, and all you have to do is provide a signature that the animal was altered.
http://images.akc.org/pdf/ADPAL1.pdf
But if the AKC does find out any information on the PAL registration was falsified, the PAL reg will be voided. OP: did the breeder register the dog with PAL and sell the dog to you as registered?