Why would you assume he's getting them from a pirate with a points generator? He didn't really imply anything of the sort from what I can tell. I mean, I bought a 4000 point card from Amazon for $38 once.
To answer bayarea's question: I think that's a pretty good deal (you know, assuming it was a legit deal. Of course, I have been guilty of being a little naive of people and their motives in the past lol)