This isn't about 'cheating' in any direct way, it's about a better strategy for winning the block race. They are playing odds, but they are behaving such that

This isn't about 'cheating' in any direct way, it's about a better strategy for winning the block race. They are playing odds, but they are behaving such that 'on average' they have an advantage over the honest peers. When they get lucky, they can use their temporary advantage to race ahead, until eventually settling back into the normal flow and thus generate the (legitimate) block chain for a short period. Because of this control, they get more bitcoins than average miners. They aren't generating illicit coins, lying about transactions, double spending, or anything like that. They are happy to wait for the 120 block confirmation and spend the coins whenever.