The sale of items is a gray area. I have bought capes from out of province which are then mounted and able to be sold (with proper receipts). You are unable to sell migratory birds, mounted game fish or Ontario game animals if you live here. Reproductions are a completely different story, since they aren't actually the fish. However, all rules are out on the black market. They can be a hot item south of the border.
I would be surprised if Shawn and James were involved in an insurance scam. Only they know if they have purchased the right coverage for lost/damaged customer items.