It might be, or it might be that the instructor was told, by the state, that online time was suitable going toward the "in person" requirement, provided the students are able to interact with the instructor. It wouldn't be the first time some petty bureaucrat changed the rules after the fact.
Requirements Prior to Applying for a Concealed Carry LicenseILLINOIS RESIDENTS
* 16 hours of Concealed Carry firearms training provided by an ISP approved Instructor.
http://illinoisccw.org/il-ccw-info/
Granted, that isn't from a state authority, but I see no reference or "in person" condition attached to that 16 hour requirement. This is the 13th instructor to be decertified by the state, according to recent news reports.
* Successfully complete 16 hours of firearms training, including classroom and range instruction.https://ccl4illinois.com/ccw/Public/Faq.aspx
The instructor WAS ISP approved at the time he gave the classes in question.
Interesting.
I could tell that the article left out a lot of potentially pertinent information. That is why I stated that it MIGHT be a case of fraud.
PS - If the instructor was approved at the time of the applicants took the class, then clearly he did not defraud them, and I think the applicants have strong grounds for an appeal.