Replace "set up" with "stung". That's how these people are often caught - in stings. They are baited, they take the bait. I think we'll see more and more of this going down in the stepped up effort to combat microcap fraud. And the greedier ones just won't be able to help themselves.
No one forces someone else to be corrupt. Free will, yo.
Inserting the big tobacco thing is pure speculation. Could have been an angry family member, colleague, etc. 100% speculation if/until the details come out. Regardless, even if it was a tip from big tobacco, who cares? Still busted for his actions.