STEM OPT Second Employer - Critical

[eram17]

Hi,

 I'm right now on STEM OPT and my H1B is picked this year and is being processed and still case received.
I was working through employer X for an end client Y  on STEM OPT and the H1 B was also filed by employer X for the project with client Y.
Unfortunately the project got ended and so my employer is just running the paycheck to avoid accruing unemployment in STEM OPT and maintain SEVIS/SEVP record showing as still employed for the company X and they are also providing the training as mentioned in training plan.  Now, I have got a job offer from another employer Z.
Can I start the employment with new employer Z besides the employment with employer X , may be for 20 hours with X and 40 hours with Z per week. My DSO said, I can work for two employers in STEM OPT .If I gets the H1B approved, I will stop employment with Z and find another project through X and file H1B amendment. 
My Question is , will there be any problem for H1B Process if they see the two employers in SEVIS record and will there be any RFE for that?  Is it legal to work two employers under STEM OPT and does it impact the H1b approval and in the future for extensions or transfers?

Please advice.

Thanks

 

[JoeF]

For the H1, the original project has to exist. If it doesn't it would be fraud to continue the H1.

And what does "running the paycheck" mean? Is the pay for real? Money in your bank account? Not paying it back to the empty? If it is fake it would be a felony. That would kill your future in the US.