It is, only if you make up an example quite unlike the one at hand. If an exec of a firm gets charged with fraud, it's not a piece of information you'd ignore when doing business with that firm, even if the fraud charges are regarding another venture. Suppose you're negotiating a deal with some company and in the process they tell you 'Oh, a couple of our key executives were just charged with fraud. But, really, this has nothing to do with us'. Your business partner mumbles 'Hmm, I'm not so sure about this...'. Do you reply 'Oh, quit being pedantic!'? Probably not.