No, it's not a false illegal check result; Emerald has two pairs of Lati@s encounters. One has a fateful encounter, while the other does not. The one without is checked first, which fails because the PIDIV is invalid for that encounter. It then checks the other encounter (with fateful), which also fails the PIDIV check. Since there are no more possible static encounters, the program will continue on assuming that the final encounter was hacked, then checks the ancillary attributes.
There is no correct encounter match, thus it keeps the last tested encounter to finish up with.