It depends on the specifics. If they are listed on payroll, that might be not be neither a misrepresentation or fraud. If you had good reason to believe they we

It depends on the specifics. If they are listed on payroll, that might be not be neither a misrepresentation or fraud. If you had good reason to believe they were hired, but weren't, I'd imagine that would land as an honest misrepresentation. If you knowingly "pretended" they were employees but they weren't, that's probably closer to fraud. Do you know the particulars in this case? It doesn't look like the article covers that specific aspect and I'm not terribly familiar with this case.