Honest question. Why is it fraud? I mean, per their corporation incorporation documents they are allowed to (but not required to) sell up to a certain number of shares of stock to raise capital for the business. What law or reason prevents them from buying those shares back - especially if they are relatively cheap and the company has the ability to buy them back?

I mean as an employee, yeah, I’d rather they just raised wages with the extra cash, but what makes it fraud?