Get ready for the jetblast PJ!
In fact, the airline and you are both victims here. The airline has a crooked employee and you may help them to find out who it is. However, I am not sure this puts the airline in the position of having any obligation to you.
You are niave at best.. but I suspect you knew you shouldn't really be buying a "guest pass" but thought it would go ok. If it was legitimate for employees to sell guest passes, they would effectively be competing with their own airline. You should be more wary of what you buy on Craigs List, but really how does this create an obligation by the airline? If you bought a dodgy cable box from Craigs List, do you think Cablevision has any obligation to you?
The reason you kept getting moved down the standby list is because you are "non revenue" as far as the airline is concerned, they didn't get any of the money you paid. They will always prioritise the paying passengers. I have flown a number of times on "non-rev" passes myself (legitimately) and it is the risk you take.
On the whole, it sounds as if Alaska did ok by you in the end. Your real anger should be directed at the person who sold you the guest pass.
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