If it were really true that this development group could deliver according to client expectations, they would do what many other groups do: form a consultancy and hire an English-language speaker not as a fake interview candidate but as a liason.
I worked with a firm that did this. Basically, they had one project manager who could speak decent English and about six developers who couldn't. The English-speaking PM was on calls with us, and then he'd farm out the work to the developers.
It was a win-win, because their group was getting work, and we were getting decent results at a discounted rate compared with on-shore resources.
But it's pretty clear that anyone looking for fake interview candidates is not actually planning to do that. They're essentially counting on the fact that it takes many companies a little while to get rid of a bad hire.
I think the main factor that drives the alternative model is that a lot of people with jobs that could theoretically be undertaken by offshore agencies advertise for an onshore individual (sometimes because they have very strong reasons not to want to offshore, but also sometimes because they haven't considered it). So there's a bigger market of better paying gigs out there for a "candidate" than an "offshore agency" (considerably better if they can actually deliver the work). Not that this particular entity seems to have had much ability...
In the grey area, there's still a big difference between a liason taking on a load of freelance contracts for the farm under his real name and intermediating comms without ever mentioning there's actually six other people he's never met doing most of the work and identity theft to take on remote full time roles involving work they probably can't handle.
I interviewed one guy that seemed to fit this description -- he didn't speak much, and when he did his accent was strong. He had someone with him, that seemed to speak on his behalf.
I worked with a firm that did this. Basically, they had one project manager who could speak decent English and about six developers who couldn't. The English-speaking PM was on calls with us, and then he'd farm out the work to the developers.
It was a win-win, because their group was getting work, and we were getting decent results at a discounted rate compared with on-shore resources.
But it's pretty clear that anyone looking for fake interview candidates is not actually planning to do that. They're essentially counting on the fact that it takes many companies a little while to get rid of a bad hire.