I have been following this thread with interest over the past few days, and was trying to work out whether this appeared to be just straightforward fraud or ineptitude.
Now, I think the latter. Gentleman appears to be a Walter Mitty type of character who has very little concept of the reality of providing a product/service to the public and the very significant amount of effort and investment (time and money) needed to do this properly and thrive.
I agree with the comments about the web site : it is slick and well written, but all goes to show that you can't judge a book by its covers, and a bit of research needs to be undertaken before comitting hard earned cash.
I have a nasty feeling that whilst his business will likely fold, he will resurface in another guise and will have learnt no lessons from his previous experiences. Perhaps that will then make it fraud?