Yep. This situation is pretty egregious - especially if the FAA knew it was going on - but it's telling that I'm not particularly surprised. I think I've mentioned it before on a different thread, but there's a charter owner from my old neck of the woods that would routinely ferry his Challengers around single pilot. Why pay a day rate on a qualified crew if the plane wasn't generating revenue, you know?
I don't think the local FSDO (let alone the owners!) knew anything about it, though. That said, most of the stuff I witnessed was a lot more innocuous.
The company I worked for was mostly on the up and up, but like the other small 135 operators in the region we were loose with some of the regs. Rolling rest, looking back to determine hard time off, actual weights required but never weighed a single bag - etc etc. Typical 135 crap, at least at the time. Our POI was well aware of all of it, but didn't care as long as the paperwork was right. On one of my last 299 rides (captain line check) before selling my soul to the airlines, as usual our POI wanted to observe as we did the preflight. And as always he'd ask us to point to the scale we used for weighing luggage. He looked at the box and said, "Kayoh, you've been showing me that scale for years and years, and I bet it still has the plastic wrapped around it."
"Hmmm...I dunno. I've never opened the box before." And then we'd have a big laugh.
My FO at the time was new - I think he about crapped his pants when he heard my comment. Welcome to 135, kid!