[rrook]

Using fake/other identities is squarely in the realm of fraud, not loopholes, if that is what happened.

Edit: The article details that part of the strategy employed was to attempt to get a refund for any flight that ended up not being delayed, which would probably qualify as fraudulent intent (I think? IANAL).

[shawnz]

They didn't use any fake identities, and booking on behalf of other people is not fraud.