Probably doing something that violates TOS or something borderline illegal. I see cases like his all the time on various forums and they seems to be missing some important details...
There's nothing illegal about returning defective products. In fact, there's nothing in the TOS about returning too many products or anything like that.
Oh okay I see. I thought you meant you were using Amazon Web Services to do something or host something borderline illegal, which I have actually seen a couple times while working here.