Update:
I sent an e-mail to John Budnik of the USBC rules department and he said the bowling was done in violation of the USBC rules and all scores did not count. He said leagues can make their own rules and allow such a lineup if bowling unopposed, but you cannot in sanctioned tournament play. I did not file a protest, but without knowing it, one of my teammates did with our association. The secretary said she did not know the rule before I had spoken to her, but the president (who happens to be a USBC delegate) did acknowledge the rule violation. In a phone interview with my teammate he did question his motive, citing the controversy with the sandbagger last year. That didn't sit well with my friend. The president did say that the score would not count and they would be offering the team a chance to re-bowl or get their money back.
As I had feared, when this came to a head, one of the bowlers on the offending team confronted us and called my friend a liar and got aggressive with him and had to be calmed down. He even accused me of being partially to blame. He said I should have told them that it was illegal. He said none of the bowlers on his team (who have all bowled for more than 20 years) knew of the rule.
Controversy follows this team. Even that night, this guy tells a new bowler on his team that he doesn't need to sanction because he is only going to bowl a few times and you get nothing for your sanction money anyway!