Hmm, well it happened at a few flight schools in Canada according to another aviation thread, and when TC found out they promptly withdrew the license of the students. Students then sued the school(s), because they had paid for training but the claimed solo time was all disqualified and had to be redone. The schools at fault could not finish the training because they had costed themselves based on a minimum insurance that did not consider a student flyng solo. I think they were using a JetRanger and trying to compete with pistons.
I've also known a few engineers/(sort-of-pilots) that taught themselves to fly without any dual time at all. One was in Tennessee, one in the Yukon, another I met in Africa and insisted on flying my 212 whenever he was in the front seat.
On the concept no solo flight in training, I doubt it makes any significant difference to have solo time or not for crew situations. Some old-school pilots like to think that a new pilot cannot possibly upgrade to offshore captain unless he's done a thousand hours of cattle mustering in a Robbie to get "solo" time. Don't think so.
Same argument as needing a TRI to be taught how to fly a specific helicopter. In real life you can probably get away with being self-taught, like the Kmax guys.
Malabo