I had to come to the good ole DF forum to see what you guys think of this. Is this shady or not?

We submit a deal on January 8th to a funder I won't name right now. They send us a decline January 9th. Yesterday the 18th the same merchant sends us a copy of a contract he just received with a 40K approval on it from the same funder that declined it for us. I know, it gets better. Let's call them funder X for now. I call my rep at funder X and ask him why on God's green earth does my client have a contract from you days after you declined it for us. "Let me check into it" he says.

So my rep calls me back saying I'm sorry man I didn't know this existed but look at the bottom of the contract. It's structured as a reverse consolidation. Funder X says we declined it for a 4th position but an ISO brought it to us a week later and said they will syndicate 50% so we are now going to do the deal. Now mind you we were never even given an option to syndicate on this deal and my rep at Funder X "never even heard of the program until now".

Is this shady? How does syndicating make the deal someone else's when you never gave the option to syndicate and declined it? Why would you even go half on a deal you just declined? Why would you not give the original ISO that submitted it first an option to syndicate if you were willing to actually fund half of it when you just declined it?

So I'm just curious what you guys think of a situation like this one? Is it ok for syndication to buy another ISO rights to previous declines a week later? Is it ok to justify funding a deal you just declined because a different ISO says they will syndicate on it?