In what sense is it fraudulent? A straightforward exchange of money for policy doesn't require anybody to lie. The harm is from the disloyalty and lack of integrity of the elected representative. And making policies in order to get money is disloyal regardless of whether it's illegal.
If there are multiple meanings for a word, I think the author (AnthonyMouse) would get the final word on which meaning he intended. And he made it clear he intended it to mean "dishonest, disloyal, lacking in integrity" not "fradulent" or "illegal".
Think of segregation/separate but equal. Nothing can really stop someone from choosing not to associate with another person because of their race or gender. And that's generally okay. But the second it becomes law of the land, through government, it's a problem. IP is no different.
There is plenty of lobbyism that's ok. The problem is when it's conspiring against the interest of the society as a whole. So both should of course be monitored closely.
I believe that's the point. "Big corporations lobbying government for rent-seeking legislation" isn't capitalism, it's corruption.