Could be, but in the guy's defense, how is that any of his fault if he signed an ISO agreement with WBL and sends the deal to a WBL email address. Doesn't mean they condone this behavior or even knew about it but doesn't clear them of being liable.
EDIT: What John said...
but it also means they are going to do some due diligence to see what actually happened, and not just take the word of a ranting rep who has already figuratively spent the money