What is Traffic Faker?
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Man that looks dodgy! Just had a look. Although one of the factors I will often use to help judge a site is link profile. It seems to be a PR3 with plenty of links on the MozBar.
I think it is used to ping sites to create a spike in the analytics for referring sites, these people will then look into what brought all the traffic which is how it gets the traffic to your site.
The product may be legit, but it looks like it's designed for "evil deeds"

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Were you able to find enough reasons to talk your colleague out of using it, or do you need some more backup?