Pretty clear-cut that this is suspicious at least, if not outright cheating. Personally, if it is true that the commish and everyone else don't care, I would find another league. If this is allowed to happen, why won't it happen next year, and the year after?
In my league, the commish's brother dropped a player for so the commish could pick him up. I jumped his case and he rescinded the transaction. It was my way of saying that if they value my participation in the league, it has to be run completely above board. I was not even in the same division or competing against the commish. It just sets a very bad precedent if allowed.
Also, I heard that other players were quietly as upset as I was, they just didn't want to rock the boat.