That was my point. This person obviously read my book based on his comments. The novel is exclusive to Amazon so I'm assuming he read it in the KU program (there was a 400 page read on the day of the review).
It would be nice to differentiate the reviews by people who actually read the story from those that didn't. Since he doesn't have the "Verified Purchased" it looks like he didn't read it.
That's the sticking point. He clearly read the story, and 'paid' for it with his subscription to KU, according to Amazon's guidelines, but since he didn't "purchase" the book specifically, he wasn't listed as a 'verified' purchaser. The key then, is to encourage your 'free readers' to purchase your books, since you earn more than you would through the KU program.
The easiest way of doing that, is to offer the first book in a series on KU, but keep the rest as ebooks (i.e. don't enroll them on the KU program). However, from all indications, people who read free books, from whatever source, don't spend money on books, so it may be a lost cause.
However, as long as you generate the positive reviews, the free readers will encourage future purchases (hopefully), which is where you'd get your payback.
Then again, if you're happy with being paid fractions of pennies per page (and a few cents per book), then continue with the KU model. Many authors base their entire careers on that very model, though they tend to crank out short (10,000 word) books so they can generate a LOT of content in a short time.