If you give the friend the money as a gift, you have nothing to do with it, right? if you give it to him as a loan to inflate his assets and don't disclose that then you are committing a Federal crime.
If people are regularly doing this at my request, and it is constantly going to someone that just burns the money, how are people still taking my requests?
The hypotheticals being pushed on this thread have a foregone conclusion that the arranging party is completely free of any hit.
Naive searching on the term shows that they common in PE, and they do have a worse default rate at 20% over 2% otherwise. Certainly something to look at more closely. And I would be nervous being party to one. That said, 80% success is still better than what some companies are looking at otherwise.