If the story is true, I think it's the Tale of Two Scammers....
I find it hard to believe, however, that enough privately-owned LFS's would buy nonaquatic plants in great enough quantities to generate significant $, and I doubt the big chains would buy from "a coupla guys."
The whole thing just sounds unlikely to me. You washed the soil off of the roots and crammed 'em in a box and sold them for...what...a coupla bucks....to make up hundreds (thousands) of dollars? And enough store owners were shady enough to be OK with buying terrestrial plants to resell to their customers?