Common, nobody would pay 25% just for privacy, even if we speak of sums above 1k it was worth the effort to go in another city and deal with a different ATM. And why did he kept meeting clients..
Criminals can pay 25% for laundering their money, but this scheme of his doesn't look like a good money laundering. Just because you bought or sold some Bitcoin, it doesn't make these money clean, especially if it's at an unlicensed exchange. There's no front here, it's just conversion from one currency to another.