I agree with you wholeheartedly on point #2 but am completely in disagreement over point #1. It's definitely fraud because he's manually inserting the errors specifically to deceive and give the illusion that he's doing something he's not. Whether the job is automated or not doesn't really matter. To your point, he could just have gotten so good that there aren't any errors anymore after 6 months and no one would bat an eye. To deliberately insert errors that don't exist simply so that he can give the appearance of not doing something is intentional fraud.