Originally Posted by JamesNoBrakes

Unless he's using said time to get a certificate, meet aeronautical experience requirements, etc, the FAA may not be terribly interested, it depends on how they want to interpret the regs, but even if there was grounds in part 61 (which could be argued with a good lawyer), the most the FAA can do is take his certs and small penalties, not throw him in jail. 61.51, it's all there. The insurance company would be the one that would go after him. I'm sure they'd sue him for misrepresentation and so on.

If it's falsification of maintenance, falsification of experience to meet currency or aeronautical experience requirements, well yeah, they are going to go after that. The FAA aren't exactly "cops", they are bound by a pretty small book (FARs) when it comes down to it. What you do outside of that is up to you, and other people would most likely be interested if it's contrary to laws or common sense.