The "taken care of" flag is only ever used in the game if Erik lives, MC then forces Erik to give Lucy a raise.
That said, Erik and his pals are the only people my otherwise nice MC has zero problems with devouring* They're serial rapists and murderers who show absolutely no remorse, whoever takes over Erik's business and/or inherits his money would have to try really hard to do worse than them.
*) also Bailey, but that's at her own request
I know about the taken care of flag. Which is used in the game not if Erik lives, but when you actually speak to Lucy. If you speak to Lucy about Erik's location, she pleads for you to let her keep her job to support her sickly daughter. You can say not to worry and that she will be taken care of, but then can go and do the exact opposite by killing Erik. There is no indication of mention that she is EVER well off after that fact.
It is only during sparing Erik, that you kill his "rapist and murdering" associates, and spare ONLY HIM to see that Liz AND Amber are taken care of for their JOINT swimming career, and Lucy is tied into it by getting a raise, and Erik is to only interact with the twins through her. As far as I'm concerned for a harem evil route, this is the best option. As you open up (potential) future scenes with the 3 of them perhaps when we get out of H.E.R.O.
Like I mentioned, should you kill Erik, not only does Liz lose her sponsorship to go "do something else" (probably leading to Amber not wanting to do swimming either), but it also seems that you completely fuck over Lucy and her dying daughter. Not a very good harem Master are you...?
Edit: I would've loved if Liz and Amber found a new sponsor instead, and Lucy was covered by the Mafia, but it doesn't seem like that is the case.
Perhaps "Evil" is too subjective, I'm not a ridiculously unnecessary douche bag, and I don't think the game allows for that kind of narrative anyway (to some extent). I suppose I'm kind of like a less compassionate Eren Jaeger. I have little to no regard for those outside of my immediate circle who get in my way. But I cherish those close (that don't fuck me over; Deryl and Jake). I like Michael, I like the bar fight with Daryl, I even like the little kid at H.E.R.O, and Clark kinda (he stole from me, I'll return the favor if needed). But of course, I also like tits and ass, so females will be added to the harem one way or another (fuckin tsunderes). I was nice to Jake in the beginning, then he turned into a dog that had to be put down. I liked Deryl, but then he had to be childish in a life or death scenario. It's the little things that tick me off, the farmer caught me, I don't know him, he's dead, none will be the wiser. The world is cruel as Ella puts it, and that applies to real life, given a chance to have powers like this; I probably would only care about those close, and screw everyone else around me, but this is a porn game, and there is sex, and with sex comes a harem that must be satisfied.