The Indians reworked the contract of Roberto Hernandez, aka Fausto Carmona due to his using a false identity:
Hernandez, recently cleared of false identity charges in the Dominican Republic, will make $2.5 million as a base salary in 2012 and can earn an additional $2.7 million in performance and roster bonuses. He had been scheduled to make $7 million this season, but the club renegotiated the amount while adding incentives for innings pitched, starts and days on the 25-man roster.
According to contract terms obtained by the AP, Hernandez will receive $200,000 when he reaches 20, 23 and 26 starts and for 150, 170 and 185 innings. In addition, he’ll get $250,000 for 95 days on the roster and then $250,000 for every 15 days up until 165.
The Indians also reduced a $9 million option for 2013 to $6 million, with any bonuses reached in 2012 tacked on. He can earn another $3 million next season in bonuses based on innings pitched.
So if everything works out and he makes all his incentives, Hernandez stands to lose about $1 million versus his original contract. It will be difficult to meet the incentives, however, if the US government decides not to let him in the country.
I would be surprised if MLB approves the contract. Has to be some punishment by the league for age/identity fraud. With prospects they typically prevent them for signing a new contract for 1 year as penalty.