Just trying to understand what is going on, is the current belief that HG deliberately advertised the program in order to defraud his customers or that he had some sort of unforseen catastrophe that he was ashamed to be known for and decided to pull up a story about a scammer?
I think if Dan posts the timeline it might make some things more clear.
You asked for the current belief. Here is my personal (current) belief:
I don’t think he created the whole program to defraud people. He simply can’t handle money. My belief is that when funds came in he spent a big chunk of it on personal things that have nothing to do with the program. His justification for it might have been “I’m expecting to make $150k profit from the program, so I’ll take my cut now”. I unfortunately know people like this and this is their line of thinking. He was banking on a certain amount of reservations, and that did not happen.
His MO is to push-off paying vendors for as long as possible and until after the program is over, then he either pays off some of it or just leaves the vendors holding the bag.
He probably thought he can pull this off with the Claridge. Pay the first 100k and push off the rest until after the program is over, then just tell them he’s in bankruptcy and can’t pay. The Claridge was having none of it and warned him that he must pay up. Since he already spent the money, he couldn’t pay up, so he starting dodging (as shown in the emails) and then eventually made up a story about phishing to try to convince the hotel that he’s serious and will pay up. He was hoping the phishing tale would buy him the time he needs. The hotel must have gotten a sense that he’s bluffing and told him to take a hike.
So he was banking on the hotel not asking for the money and having more overall reservations, both of which did not end up happening. Since the hotel is not giving back the deposit and the rest of the money has been spent, there is no money to refund customers.
Disclaimer: this is my personal feeling about this at the given time and with the information available.