"oftentimes what appears to be evidence of cheating can be not quite the case"
Quick Review of the evidence:
It seemed that the guy had a scam page on HIS domain. Sales were reffered from that scam page. Screen shot is taken showing exact url, his domain and content of the page. Logs show that the scam has been going on for weeks. Scam page mysteriously disapears after his account gets canceled.
I don't think you can get any more solid evidence than this.
Someone would have to go through a lot of trouble to screw some webmaster over: buy a domain, put victims name in whois database, host the domain, and then use his own credit card to sign up, or send his own traffic so people would sign up. And, do this for weeks.
I think it's WAY more likely that he was screwing the sponsor, than some guy was trying to screw him.
Cancelling person's account and not paying is the least a sponsor should do, given the evidence presented. If I saw numerous sign ups from the scam page, I would probably even go as far as e-mailing the screenshot to his other sponsors, if any.
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