Ask HN: Company is using low quality sites to build links. Is that bad SEO?

It has been found that company is creating, or paying a "trusted vendor" to create, fake websites and user profiles in order to stuff keywords on those sites and then link back to company site and social media profile. This is part of SEO strategy.

Sites include everything from free website hosting sites, forum profiles, industry job / skills boards, and even artist community sites.

Every site has same messaging and same links to company site and social media platform.

Many of the free website hosting sites appear as if it is company but often have incomplete templates using example text, example services, example address, and example team member profiles including photo but home page has same messaging and same links to real company site and social media platform.

Nearly 50% of the sites use rel=nofollow links.

Nearly 50% of the sites use a fake person name.

Some sites say the fake person works for the company.

Is this is bad?

If think this bad how would you try to educate company that this is bad (keep in mind trusted "high quality" vendor is in play with the decision making process).