Loads of folk seem to sell a pile of them on ebay but, as Tony says, it's not worth it if you have anything to lose. I also know of at least one chap who is currently going through a similar nightmare.
Music wouldn't be the same without bootlegs, although many are absolutely crap sound quality. Some bands don't even know what a live recording is! Take Zeppelin (until the recent "How The West Was Won") as just one example. At the other extreme, some bands release loads of live stuff - Pearl Jam come to mind here.
I believe that bootlegs - as opposed to counterfeit copies - do not hurt an artist's sales at all, as the buyer likely has all the official recordings anyway.