For real people I thought we were Libertarians here? If people want cheap/free/stolen software bad enough, they will find a way to get it anyways. No reason to specifically stomp on this dude. Free market, free economy.
I think the point of contention is not the fact that he/she might be illegally selling keys, but that he/she might be doing that and yet is telling his/her buyers that that isn't the case. Even in a capitalist market, scams and fraudulent businesses are not and should not be tolerated.