Those numbers are extremely alarming, and if you don't mind please link me to where that information comes from - is it simple addition of forum users that claim to have been paid? do the numbers come from the block chain? could Pirate be sending BTC from his main wallet to just some other wallet he controls and then claims the transaction as interest?
They're from the blockchain, yes. It's possible pirate has set up some dummy accounts which he pays interest to each week but which go back into a wallet he controls, but what's the advantage to him of making the scheme look bigger than it actually is?
possible scenario how this helps him / connection to shill account theory too:
-- Pirateat40 sets up 10 latops on 10 VPNs with 10 BTC wallets and 10 bitcointalk.org forum accounts, creating them over time / maybe a few at the same time but spreading out sign up dates
-- He posts his BS scheme, talks the slick-talk about how he has super-trading margin lending fake whathaveyous
-- now he can fake 10 initial "investors" with block-chain verifiable deposits to his scheme.
-- those future 7% interest payments cost him nothing as well, he's just sending the btc back to himself. but you all see it in the blockchain as interest paid
-- credibility builds, use shill accounts to say how great it is / invite others into "trust accounts" and whatnot.