In some jurisdictions, you are allowed to re-sell tickets. For example, in Connecticut, it used to be that you couldn't resell them for more than $3 more than face value, but in 2007, they enacted a bill which essentially says that you CAN resell tickets for a premium. There are restrictions, however, including that you cannot do so within 1,500 feet of the venue, and, ironically, that you have to provide full refunds (including fees) if the event is cancelled.
So, yeah, douche, but depending what state he is in, he isn't doing anything illegal, and therefore might be entitled to his refund.