What he did with the money is irrelevant. He sold people a lifetime support contract. He then decided he wanted them to pay more, so he canceled them all just

What he did with the money is irrelevant. He sold people a lifetime support contract. He then decided he wanted them to pay more, so he canceled them all just because he felt like it. The fact that his original sale was a stupid idea is also immaterial. Every one of those people should get a refund, because he's explicitly told them they're not getting what they paid for. Instead he keeps their money and invites them to give him more. It's revolting behavior.