Heh. I know the guy running this. This isn't something hidden. It's a front office.
One of the very few guys to make it extremely successful off of the miles business other than Dan.
I'd love to see his contract/t&c that he provides to his customers. If he is as honest as you make it sound, he should be disclosing all risks involved AND clearly delineating who is assuming these risks, and who is responsible if things go not as planned.
There is actually a way to run a farm honestly, it's just that non of them are.
(I mean from the perspective of their relationship with a customer. - even a drug dealer can be honest. Not that the business is actually legitimate).