I'm not a lawyer, but have you ever heard of a martial arts school closing for false advertising?

'qualifications' are unregulated. you could literally print this out right now:

lol...or if you are worried someone might question the legitimacy of that one, you could order a more official looking one:

then write in your name and whatever rank you want, have your grandmother sign it, frame it. then go down to your local chamber of commerce, apply for a small business licence, then rent out some space on main street, hang your grandmother-endorsed 'qualification' on the wall - and start reeling kids in to do some karrotty!

as long as you don't break the written law, yes, you can lie about your credentals and take people's money....thats exactly what people do - and in pretty big numbers nowadays. look at how well the mail-order MA certificate mills are doing.

here are a couple random ones (but there are hundreds) which are apparently selling rank without regard to in-person evaluation or any kind of technical observation...

United States Martial Arts Association (USMA)

Brotherhood of MartialArtists
(I wonder if one of the 'Member Benifits' is a free spell-checker? lol)

etc...none of those are breaking the law. they provide a membership and other services, and printing rank certificates is one of those services. Thats not fraud in the legal sense. whether you or I consider it fraud in the common sense is a matter of opinion and choice to join or not.

not fraud. choice.