Yes, and I too think that was fraud. Fraud is in fact illegal if it can be proven.
I don't do my own work on my house any more, I don't have the time (or patience with the sloppy work ethic I show to myself...). So I called a local EC to put in some overhead lights, he tried to up-sell me on replacing my panel too, just because it had a mixture of CB brands in it (Sears panel, which was Bryant, has Bryant, Siemens, and Murray breakers in it, totally legit at the time it was installed in the 70s). He told me it was unsafe and about to catch on fire, then I let him go on to see how far he would go with it. He started trying to tell me that the old 70s vintage cloth wrapped SE cable was "knob and tube" wiring and illegal, so I would need a whole new service run from the meter (it's about 30' away). $3900, not including the 3 overhead lights I wanted in the first place! I don't generally tell electricians I hire that I'm an EE or that I used to be an EC, they might think I'm going to interfere and really, I'm not interested. I am hiring them because I DON'T want to do it any more, and I can afford to "pay the man". But this guy was a blatant rip off artist so I got his written estimate, called the CSLB on him and gave them the details. Don't know the outcome though.