According to The Associated Press, 23 year old Christopher H. Bouffard accepted $760 in 2008 from at least two people in exchange for WoW accounts. Bouffard then failed to turn over the agreed upon accounts, leading to a police investigation. He has now been charged with two counts of grand theft and one count of scheming to defraud. Bouffard is currently being held in jail until he is able to post a $20,000 bail.
While defrauding people and taking their money isn't anything new, getting busted over it while selling WoW accounts is. From what we understand, the arrest is not for the actual trading and selling of accounts, but for the fraud that went on in the process. The fraud in this case is a criminal matter with very real implications for Mr. Bouffard, whereas the buying and selling of WoW accounts is against the agreed upon Terms of Service, but not against any criminal code.
We've been hearing a lot about misbehaving WoWers lately, from the cougar who ran off with a fifteen year old boy, to Blizzard helping international authorities track fugitives online. This appears to be just the latest in a string of cases for Jack "Hang 'em High" McCoy to lay some law and order down on.