Here we go again. . . .
I doubt anyone will get prosecuted in California for "buying" a frequent flyer ticket. Most state laws do not apply to the airlines.

Most mileage brokers will request you to send the miles COD---they will need to hand over a money order in order to get the letter with ticket inside.

The real value in frequent flyer mile tickets are not in coach award seats but in upgrades and business /first tickets. With asking prices for these seats between $5k and $10k there is alot of room for profit.

I have said this before and will say it again, anyone who gets upset about someone else selling an award ticket should also get upset about any other practice that violates airline rules. This includes using 1st Air, back to backs(even using seperate airlines), hidden city ticketing, and buying a round-trip with the intention of only flying one-way.