Originally Posted by skunker

From my understanding, yes.

What I read was people would open multiple accounts, 5 or 6, and then put something on the card to meet the minimum spend ($10k?). They would get the 100k miles, return or refund the purchase, and close the account to avoid the annual fee. In some cases they then sold the miles to brokers.

Head over to the AA forum and read the fraud thread.