Tom Burgoon's Power Pick Pocket is really killer. It is a sponge wallet that looks pretty real from a short distance away. It is really meant to be a gag for when you have a volunteer on stage.
The way I've seen Burgoon do it is as a trick within a trick. You start some unrelated routine with a volunteer. The sponge wallet is palmed like a normal spongeball. You get the spectator turned one direction and involved with something, like inspecting a prop. Then you appear to pick his/her pocket by reaching behind them and removing what appears to be their wallet. You go through it and take out a bill and appear to secretly return the wallet.
After the routine is complete and the volunteer is heading back to their seat, you tell them you have a parting gift and hand them a one dollar bill. The audience thinks you are an amazing pick pocket and the spectator has received a "gift." http://www.penguinmagic.com/product.php?ID=S6755