Fucking Bitcoinica and Interscamgo is still fucking up our year. And now they're about to take Bitmarket with them, too? You did the right step admitting to it. These self-proclaimed Bitcoin promoters organizing conferences have no idea just how much they have sustainably hurt the entire Bitcoin project. Thank goodness you're not Patrick Strateman covering lies with more lies. I really hope you can set this right. Everyone will be horribly disappointed now and call you a scammer but I wish you have a chance to get out of this mess.
Um he did lie to you. He lied (by omission) when he took depositor funds and used them in a speculative, unregulated manner without disclosing it. He also lied when Bitcoinica failed and he was insolvent. He continued to lie for over a year hiding this material fact from depositors including new ones who deposited funds into an entity they were unaware was massively in debt (good money after bad).
He didn't "come clean" he simply couldn't payout withdraws (much like a ponzi) and had no choice but to admit the issue.
You call that honest? Really? Until that attitude changes Bitcoin related enterprises are simply ripe for failure.