If "many businesses" operate this way, then "many businesses" are committing fraud. You can't publicly claim to be selling loans to an unrelated company when in fact you control that company.

The latter has not been proven and the former is pretty normal for business. We will see how it plays out in the court and markets.

The second law of thermodynamics hasn't been proven either, but I'm fairly confident in it. ;-)

Fair enough, but courts tend to apply a slightly higher evidentiary standard than thermodynamics. ;)

You don't think the last sentence, if proven to be true, is fraud? Or, at the minimum, an example of scam behavior?