Unless something has changed I don't know about, flagging does not generate curation rewards.

@r4fken is doing this out of spite and to stir up trouble. I do not know the whole story, but he's doing this to retaliate against those here that are trying to help the community by fighting abuse. He's flagging random posts to gain attention for his cause and to try and turn users in the community against each other. He's also trying to stunt the growth of steemit by discouraging new users.