I dont think that Pirate is doing anything illegal ! There is no wonder how he is paying 7% a week when anyone can make 100% "if not more" in a couple of hours by simply buying shares @ GPUMAX and direct it to a score pool such as slush!
If you can earn more by hopping slush than gpumax purchases cost, then I have a few 100GH for you to play with. Heck, you dont even need mine, you can buy them at gpumax and get filthy rich.
Even if you somehow managed to earn 200% PPS on slush with a 10% of D hopping point, after paying gpumax users 140% you would be looking at something like 500 BTC per month, if that. Thats not even pocket change compared to what pirate owes.