The author's perception is that Mark Cuban, in agreeing to do that deal, is bound by contract to invest in someone now alleged to be committing fraud, and is therefore "screwed." However, there are almost certainly clauses that any deal on Shark Tank is subject to diligence after the deal is made. Maybe, and I'm just hypothesizing here, there are even punitive terms that if due diligence falls apart, they need to pay the production company in exchange for the exposure... in which case, it is the entrepreneur here who would be royally screwed!

From the production company's perspective, why bother doing due diligence beforehand if it still makes for good television, and they're protected in a downside case? The true sharks are the ones who build the tank.