Interesting topic.
I have to say I am surprised that anyone is surprised that this happens - I fear this problem is far more widespread than is generally recognised.
A lot of posts have expressed surprise that logbooks are not "checked".
Leaving the military aside (Id have thought they could be relied on to crosscheck) there is no way the CAA can have the time to verify hours by calling up flying clubs, private owners (to say what, and against what records?) or even companies. There is simply no time for that. They struggle merely to add up the hours you have submitted on the application form, I very much doubt they even add up the hours in the logbook to see if they tally, so back-checking, forget it!
In 15 yrs of commercial aviation I have never had my hours crosschecked to my knowledge (and I would have been told in most cases), no employer has ever crosschecked with a previous one and the CAA have always believed what I have told them. In many cases they simply could not crosscheck if thay wanted to. How can the CAA tell if I hired a private cat C150 for hours bilding in the States? Just not possible I think.
This is a business of trust, and so far thank God we are still trusted to be honest. If these maggots continue to rot up the system that may change to the detriment of us all. I hope they get caught and treated in the only appropriate way for one who has betrayed a professional trust.
As usual the barrel is threatened by a very few rotten apples. They need to be removed, and we should rejoice when they are.