I ended up coming to this forum by doing a google search and finding this thread - "Mileage brokers - Are they legit?". There was far too much of it to read all the way through but what I did read was very illuminating. I enjoyed reading all the different viewpoints of this subject from the anti and pro camps.

I would like to speak to it from the end customers viewpoint.
I have bought 3 tickets from 2 different so called 'travel agents' online using this ffm brokering method. It has not been a good experience culminating in being conned out of $5,250 by an individual who opens and closes businesses hiding behind corporate law and state lines.
Yesterday I was contacted by another person who was tricked out of 500,000 frequent flyer miles in his account by this individual and his now partner in crime.
Although they seem to be the money man the other one has provided the info for the con and they run a very shady business.
At first I thought that the original company International Discount Flights out of Reno, NE that conned me out of the $5,250 and run by Sanchez was a one off. I received a threatening email from Ramos - who seems to fancy himself a tough guy - which intimated that he had no idea what this fellow he had 'hired' had done in the past.
I was a little confused, feeling actually a little sympathy as he too had been used.
Wrong!
Yesterday I find out that this pair had conned 500,000 miles out of another guy.

Anyway, the purpose of this thread isn't to whine about losing over $5K. That is life and I will recover from it. The reason this thread is being put up is to warn others. Not just against these specific characters and the bogus gray area business they are running in California but against ALL these frequent flyer mile brokers.

There is zero recourse. The FBI, local police in any jurisdiction are either powerless or uninterested in going after them. So my advice is even though it is tempting to buy a cheap business class ticket don't do it because you are taking an enormous chance.

It is not only the money. They will screw up visa dates, take off departure schedules you name it. You will have difficulty getting phone calls and emails answered.
Bottom line is stick to Orbitz or Expedia. More expensive but safer.