There's no lying or fraud. Company B (the production company) agrees to pay Company A (the studio) $X for services. Done, price agreed. Of course, both comp

There's no lying or fraud. Company B (the production company) agrees to pay Company A (the studio) $X for services. Done, price agreed. Of course, both companies are owned by the studio, so it is just transfer pricing as far as the studio is concerned. But it is a real cost for the production company so that that there is no profit for residuals. Intentionally.