I was contacted by someone else who had problems with flyhub.com, and was owed about $6k or so. Luckily the flights had not been taken yet, and a "Pay up now, or I'll cancel the flights" situation arose, and the "Pay up" option was taken by Danielle.

If the original flights have not been taken by the person the OP used his miles for, I would recommend the same approach.

If I had to guess, I'd say the business started out legit, but has either hit cash flow problems, or has turned into a semi-scam. Only when forced to, do they do the right thing.