Consulted with SEO specialist in my area- need opinion

[tar167]

I responded to a local ad for seo services. The gentleman told me that if I provided him with 20 targeted keywords that we want to rank for, he would create 20 pages for each keyword making us look like we have a 30 page site instead of a ten page site which we have. Is this a penalized technique or black hat seo? How are they doing this? He said recharges 500 per month and its a long term contract. Once we stop paying, he takes the pages away. I do intermediate programming-html, css, some php, nothing fancy-and have been teaching myself SEO tricks over the last several months. I work full time for my husband who owns a small local business and help him exclusively so I'm not doing this for a living per se and am a novice at SEO. We get a good amount of local traffic already due to Google Places/My business so I'm not interested in plunking down that sort of cash when I don't think we need it- we are local and don't need national or extended visibility. I'm just trying to figure out if this technique is widely used in SEO. Thanks so much!! Such a wonderful forum here.