My point is that irrespective of who your friends are; irrespective of whether it is in fact "profit shifting" or "illegal activity" as you say, the scheme was not in the best interest of shareholders. The fact that the revenue was entirely offset by outsourcing costs mean that there was no value creation for shareholders. The only person who benefitted from the scheme was JK and his pals who ultimately received the performance shares.
As a holder myself, I find it utterly ridiculous that people are endorsing this behavior.
ISX Price at posting:
$1.07 Sentiment: Sell Disclosure: Held