Originally Posted by Aussienarelle

Unless your friend is 20 years old (no offense to 20 year olds) and still wet behind the ears when something seems too good be to true, i.e. I can buy miles from United for $x or from someone else for a steep discount off $x, it probably is too good to be true. I do not buy that an experienced traveler did not think it was an issue, I suspect "your friend" did not think they would be caught and if they were caught the consequence would be minimal. I for one am glad that UA is closing MP accounts for selling/buying miles/points/certificates. If someone has that many miles and that many PlusPoints why on earth are they buying miles from someone else?

I do think as someone noted upthread if you have the ability to buy and sell the miles/points/certificates then that monetary value should be taxed as under the tax code anything you receive is taxable - "your friend" should issue a Form 1099 to the person he purchased the miles from! UA has to pay tax on the miles they sell to customers.