Nephew used bogus email account(used valid credit card)

I am trying to help my Nephew to regain his previous purchases in iTunes.
When he received his iPod Touch last year, a friend helped him setup his account using a bogus email address. However, he did use a valid credit card and was able to purchase music, movies, tv shows and apps. Everything was working, he was able to sync his Touch without any issues. When he bought an iPhone and tried to sync/transfer his library, he kept receiving "incorrect password, please retry".
The issue is he needs a new iTunes account. But, he doesn't want to lose his purchases
All of the pruchases are still on his iPod Touch and Macbook Air.
Does anyone have any advice or a suggestion?
Thanks in advance!

edit: I should add that the bogus email account was used as his iTunes id.

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