I assume he's spending user deposits. Maybe he's using his own money, but I don't think he has enough to cover lawyer fees. He said in the meeting that he wants BitcoinGlobal to pay for the lawyer.
Well, it's one thing for BitcoinGlobal to pay for the lawyer and quite another to pay the lawyer with users' money. John Corzine (CEO of MF Global) got away with it, but I don't think that Mr. McCarthy can bribe the regulators like Mr. Corzine did.