But the "fraud" here is being done mostly to VC investors with deep pockets and lawyers, at least until he tries to take this entity public. And I can't imagine them just taking this lying down, but then again maybe they realize that offloading this steaming pile on public market investors is the best way out. But even then... SpaceX seemed like it was quite viable on its own, the investors there are the real losers here.

It is all very puzzling to me.

no I get it, but I mean fraud is usually kept out of the public. this is fraud in broad daylight?

It's only fraud if rich people lose money

Poor people are using their public car company to buy their private space company?