You refer to the ICO as fraud but I'm curious; what evidence do you have of that? If it comes down to "our app really doesn't need a token" then that isn't fraud. If it's "we're going to sell this token knowing that we're going to phase it out and just use fiat after launch" then that's fraud. I understand that as the technical guy in the room you might be uncomfortable with shoe-horning a token where another tech is a better fit; however, that doesn't constitute fraud, just bad engineering.

Save the report man. They aren't interested in the technical reasons of why a non-blockchain solution is better. In fact, they're not interested in the tech at all - they are approaching it from a fund-raising perspective. If it's fraud and you know it - leave. If it's not, do the ICO, raise the cash and save your company.