The truth is you can't properly account for these transactions. If they are making legitimate equity investments (ie, that an independent investor would reasona

The truth is you can't properly account for these transactions. If they are making legitimate equity investments (ie, that an independent investor would reasonably make) it's all fine. If they are investments that don't hold water, it's fraud. It's not that different to any type of vendor financing. Vendor financing is legit, if done legitimately.