They would get in BIG trouble if he were actually an APPROVED Friesian stud. He's 1st premie, sure, but that's still not approved. That process takes a while, and a LOT of money. There are quite a few people that don't want to go through that process, and just skip it. Or they try, and get turned down at the first part of the inspection. Then they end up doing this. I see a lot of unapproved Friesian stallions breeding everything in sight. You'd think FHANA would be aware of it, but there are just so many that I don't think they can keep track!
I really get sick of the "Oooh! Pretty hair! Gotta breed it to everything with 4 legs! Your horse only has 3 legs? No matter! We'll get a stilt to prop her up while he does the deed!"
I've had 2 people approach me with purebred "1st premie" Friesian stallions that they wanted to breed to my (FHANA registered) Friesian mare. It'd make their stallions look great, as the foal would probably turn out okay, but it'd make my mare look like trailer trash and, as someone already stated, would put her at risk for getting kicked out of the Studbook. Also, a lot of Friesian mares have trouble with the birthing process, so why would I breed my mare to a stud that isn't approved, and make that risk? Why not make the risk on a foal that is registerable, and that will continue to compliment the breed?