I don't know him, but ask "Has all of the deposit money collected been deposited in an escrow account?", and he will squirt out a cloud of ink and swim away backward.
It's a Ponzi - after he spent the deposits on personal expenses he can't pay the foundry, his staff, machine shop, or even rent... until he takes more deposits... which he spends.

What did you THINK was happening?
Used before that I know of in other industries: his wife/friend starts a new corporation which lends him $1,000,000. Now, when he goes bankrupt, HE is his largest creditor and gets back all of his own inventory for 10¢ on the dollar (stiffing the other complainants). Opens new business, sells the same parts you already bought a second time. Rinse, repeat.