There are two things that strike me about this story. 1-read the model release if you allow a professional photographer to take your photos, even if you hired them.
2-people will stoop to anything to make a buck. While what this photographer did may be standard practice, it still stinks to high heaven. Personal ethics mean nothing to these weasels. I don't care what was signed or where, there are honest ways to make a living and there are devious ways, and a legally propped up scoundrel is still a scoundrel.