This kind of phony stuff will never be as much of a problem in the jiu jitsu/submission grappling/vale tudo MMA world as it is in the rest of the MA world. And its because not all MAs have such an emphasis on real applied skill and competitions. Arts such as karate and kung fu which are generally geared more towards just practicing and perfection of the artistic side of it will attract all the phony fraudulent stuff. In the Asian martial arts business you are not automatically expected to put up or shut up. Its more a question of your lineage and position in the pecking order. Its not unusual to be able to simply give rank or certificates to any idiot and not have to answer for it. With all the different BS certification titles and belt systems, there is really no common standard to be applied. In jiu jitsu, with all the reputable teachers and fighters training out there, there is no way for you to get too far in the Bjj world by handing out rank. And if you really want to gain respect for your gym, you must do it through winning grappling or MMA competitions. Any sport or MA that is centered around comparing skill through competition will weed out frauds and know-nothings. You can't just go around saying you are a great jiu jitsu player or fight coach. If you don't have the record or the fighters to back it up with, no one will take you seriously.

"The UFC spawned a new breed of "mixed martial artists." World-class wrestlers learned to kickbox. Champion kickboxers learned to grapple. (The karate experts learned to stay home.)"