My brother didn’t have time to call/email Elal and QF but when he does, will report back.
Updating here:
I emailed ELAL for compensation stating that Qantas was giving me a hard time about refunding me, and that ELAL should compensate me. They replied with an offer of $500 cash. I responded to that offer that i should be getting more than that for obvious reasons. Now their response is this:
"...As we have kindly explained in our previous email we don't have any way of determining the amount of points used to issue your ticket. Therefore, we consider it reasonable to offer you the amount paid for denied boarding compensation according to the Israeli Aviation Services Law. The amount paid for flights over six hours is 860 USD..."
I would obviously like to get more than the $860 offered, but don't know how to go about it.