Does a non-US citizan have to pay income tax on money made by trading stocks through Scottrade?

Based only on these facts, he should not owe US tax on his trading gains. Trading in stocks and securities for his own account is not a US trade or business. Nonresident aliens who do not spend significant time in the US or conduct a trade or business in the US should not be subject to tax on capital gains.

That's the good news. The bad news is that if he receives dividends or interest from US companies, he is subject to 30% withholding tax. However, his brokerage should have withheld the tax; he should not be getting bills from the IRS.

He should consult a qualified tax professional to clear this up.

So..

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Yes, he will pay taxes on the income from that account. If he properly identified himself as a non-resident alien when he opened the account, Scottrade would have withheld tax on any earnings at 30% and he would have no further obligation to the IRS.

Non-resident aliens are subject to source taxation at 30% on all income from US-based investment and bank accounts, unless a tax treaty exists to the contrary. They are supposed to identify themselves as non-resident aliens when they open the account, and claim any tax treaty exemption at that time. If they fail to do so properly, or fraudulently claim to be US citizens and provide a bogus SSN (which appears to be the case here) then the IRS will assess the taxes due. If he fails to pay this quickly, the IRS will levy the investment account and seize what is due automatically. They (the IRS) likely have already put a freeze on the account so there is no way for him to avoid this.

How did he open a scottrade account that does not withhold if he does not live in the USA?

99% of US citizens are not trusted by the USA to save money to pay their taxes so our emplyers must withhold a certain percentage of our wages to cover our taxes.

if nothing was withheld, then yes he must pay taxes. but i cant see how the US can force him to pay. he is not even a "non-resident" tax payer.

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Yeap. He made income in the US so he must pay US income tax.

If he is doing business in the US then probably so. Check out the link below.