Set up an American corporation for a foreign national

I know a US citizen, I'll refer to as Frank, who was approached by a friends brother, Harry, who owns a mobile data account management company in Canada.

This company currently purchases accounts at a premium rate from a third-party who can export American accounts. Harry wants to avoid this premium charge and attempts to open an American Corporation, which he can do. But when he attempts to open mobile data accounts with, for example, T-Mobile, he is unable to because this new corporation has no credit history and his Canadian history does not apply in the US.

Harry says:

"Essentially, I need an American to sign up a T-Mobile account because T-Mobile cannot run a credit score on Canadian businesses or individuals."

He offers Frank $10,000 if he sets up an American Corporation in his own name, and then sets up a T-Mobile account with the following requirements.

• International BES data-only
• 500MB minimum
• month-to-month plans with no phones required

Harry's plan is to have Franks name on the corporation until it has built up enough credit on its own and then Harry will be the sole owner.

My questions are:

1. If Frank set up this corporation and something negative were to happen, would his credit be in jeopardy?
2. Can Frank be held liable for anything even after the corporation is officially sold to Harry?
3. It seems like maybe some laws are being either dodged or blatantly broken in this case, any thoughts?

If Frank set up this corporation and something negative were to
happen, would his credit be in jeopardy?

Of course. He is solely responsible.

Can Frank be held liable for anything even after the corporation is
officially sold to Harry?

For anything that happened before that sale - likely so.

It seems like maybe some laws are being either dodged or blatantly
broken in this case, any thoughts?

Probably. Lawyer needs to go over this. Keep in mind that sale of corporate stocks is a taxable event, so when Frank sells to Harry - he'll have to report a taxable transaction, and pay taxes on the proceeds.

He offers Frank $10,000 if he sets up an American Corporation in his
own name, and then sets up a T-Mobile account with the following
requirements.

This is the most fishy part. Is Harry a stockholder? If not - what is he paying for? If yes - the corporation has a foreign owner which has implications (for example - cannot be a S-Corp). Will the $10K be reported as income by Frank? It should be, including taxes (income and SE, as it is compensation).

I think the best solution for this issue would be, to register the company under Harry's name and make Frank sign as a "Guarantor" or "Cosigner". That way, Frank is only guaranteeing that Harry's company will not default, and is not assuming any liability for any laws being broken by Harry's company. T-Mobile will run Frank's credit, and accept Harry's company on his guarantee. After a while, when the company has its own credit history, Frank's name can be removed.