To make a long story short. Here was a guy who had been in the business 27 years with a nice renewal block of business, who is now spending time in prison as a direct result of his involvement with this company. Remember ignorance or stupidity is not an excuse.
A lot of people wouldn't be in this situation if they would just give the money back when asked. I don't know your friend's situation, but I've seen people that could have stopped what they were doing and been okay, but avarice and arrogance took over.