I really haven't dug into it extensively at all so I'm likely very wrong but my understanding was that this children knew nothing.
They definitely didn't "pose" for any pictures though. Their faces were photo shopped on to stock pictures that this agency used to falsify their look as an athlete.
Unrelated but today when watching golf I heard that Phil Mickelson also paid for this companies services for his children but he denies making any payment (which is probably true as he wasn't indicted for doing that).
From the sounds of it, this company sold itself as being a very legit company.

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