What a bullshit story. I understand Mel and Scorpio being somewhat bitter about how shit panned out for them, but it's hardly Flash's fault that Mel's career went up his nose. The suggestion that Flash is somehow conning people because he doesn't "perform" on the records (Er, "Wheels of Steel", anyone?) is garbage. Even back in '81, I knew exactly who Flash was and what he did, and I was in fucking England.
And anyway, if you want to talk about fraud, how about when they booked a European tour as "Grandmaster Flash & the Furious 5", only for people to rock up to the venue to see them billed as "Grandmaster Furious and the Furious 5", as was the case when they performed at the Hacienda in '84? I actually thought the promoters had made a massive fuck-up on the posters, but unbeknownst to the paying punters, Flash had quit on the eve of the tour, and a few other dudes who also never performed on any of the records, like Tommy Gunn and Kuriaki from the Rock Steady Crew, were along to make up the numbers. I later learned that E-Z Lee (a/k/a Sylvia Robinson's boy Leland) had been given the job of effectively pretending to be Flash, and that evening he did a bang-up job of fooling most of the crowd. Again, because I knew exactly who Flash was and what he did, I knew that one of his trademarks was three turntables rather than two, which the imposter used. All through the show, they referred to him as "Flash", and he attempted not entirely successfully to recreate the "Wheels of Steel" routine, which I'd seen Flash perform live twice when they toured the UK in '82. It's the only show I've ever been to where I asked for my money back (and got it).