It's not OK. Period.
Trouble is that it is very difficult to bring these cases to a successful trial. So many cases are not prosecuted. People who commit this fraud are confident that they can get away with it. Mr. Trump had been getting away with it for years. Probably his father and grandfather.
As the pattern develops, it should be obvious that this business should be avoided. Yet his businesses, up until recently, continued to attract customers and suppliers. If they had a notion the law would protect them, they were mistaken.
And again, the accountants who prepared his financial sheets should be on trial as well.