No, it's the same as a reference. You only put people you trust on your resume for that reason. It would be dirty and immoral, but not illegal.
On a side note, I just realized that my $10 data connection to my PC is as fast as my $60 hub from Verizon. (My PCS phone isn't with Verizon, but the hub is.)
In most states, including NY, it is actionable. My former boss knows this, and it is also a small city (40,000) and we frequently encounter him socially, and he would know that I knew that he did that. I really do not think he would, partly because he has no basis upon which to do so, partly because there are legal implications that he is well aware of, and partly because I'd hate to have to tell L&M to make the pin placements brutal when L&M knew my former boss (who is a member at the country club where L&M is management) was golfing.
He also, I'm hoping, has some sort of honor wherein he realizes that giving me a good reference is not only accurate, but the right thing to do based on the work I did for him.