I think there are a few things that could have happened here.
First the obvious ones:
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Fraud that both knew was fraud occured. I don't think that's likely but people are people.
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Something Apple calls "fraud" happened that may have been something more arguable, and a strong personality ran head first into a brick wall. This happens a lot in the iOS/Mac AppStore process, as anyone who's tried to moderate this situation on behalf of anyone else can attest.
The less obvious one: