Actually no. See Isla Sorna (Site B) was where the science of cloning dinosaurs was perfected as it were and the lab on Isla Nublar was there for show. It was functional, but having the messy business of mistakes, errors, failed cloning methods, and experimentation off-site allowed InGen to distract rivals and the public from the darker part of their ventures. Since no one was supposed to know about Isla Sorna, this kept any real developments safe from industrial spies and the like. So the cloning was no more illegal than on Nublar, but as the company didn't think anyone was going to actually go to the island after quarantining it, they could lie about what species they had actually succeeded in cloning. That or they just honestly had to clue they had a spinosaurus.