Honestly its better if he sells the whole operation. Im sure he could still get a decent amount for the equipment he has.
Trying to continue the operation if it is practically impossible will be an exercise in futility. Even if he has to buy the equipment personally and quarantine all funds from doing so.
Who do you think has the capital to buy outright?
I had it all figured out once what he took in on this "deal" it was over twice the amount of the equipment costs getting close to the three times on this even taking into account the ponzi payments he made for the first month or so without the machines he should still have had double what the cost of the machine were laying around which the machines would have had to come out of so plenty of excess. That is unless he spends like a drunken sailor in a whorehouse on payday. BTW for those of you with a litigious nature search on unjust enrichment that concept as it applies to contracts just may be your best friend, and of course the old stand by back up plan issuing securities without a license not exactly an encouraged practice under the laws governing them as they now exist.