On the contrary, sounds a lot like a standard "carousel fraud"
> and I doubt they would have done it otherwise.
... Which happens despite being illegal.
> Good example of why most regulation is ridiculous
Laws aren't perfect, lets try no laws!
Yes the law of unintended consequences often occurs with regulations however blatantly taking advantage of someone or something is wrong, legal or illegal. This is where we need a jury of peers to determine whether we want to encourage or discourage the behavior that this company took part in. I'd find this company guilty in a heart beat.
It's like jury nullification in reverse.
All it takes for evil to triumph is good men to do nothing.
See Kowloon Walled City http://en.wikipedia.org/wiki/Kowloon_Walled_City
Also: see Somalia 10 years ago