I'm not quite sure how someone would get more stakes just by entering a random Legendary member's name into their application. If that's actually happening, then there definitely need to be some checks and balances in the application process.
The rank of the impersonated member might not be the important thing, it's likely the cheater is just registering as many random forum handles as he find. It's about quantity. Obviously by picking a reputable forum member's name they are giving the impression that the quality will also be there when they fertilize Twittbook.