stanjoe, I'm not sure thats exactly whats being described here..
Your situation sounds like you run a program through ccbill, and this person bought a domain with a hyphen, and is sending you affiliate traffic through the Header:Location? I'm not really sure thats a bad thing.. better he/she send you the targetted traffic than to someone else
I also dont think that a simple single Header would involve a google penalty, although I'm not sure. I use that method to link to sponsor codes sometimes on some domains because it looks cleaner than a complicated link code..