Where is the fraud. I can set up a business selling Kool-Aid, and claim my brand new house is a Kool-Aid stand. May not be the smartest business, but it is a business and should qualify.
Surprisingly, you're wrong again. If you are using the house as your residence, it is not a "business" expense. Try doing the same thing under the income tax (the "home office" deduction) and see how far you get. Using a business to provide an individual with consumption goods or services is not allowed, and the fair market value of those goods and services would be used to assess the tax due.