My post at another board about this was deleted, so someone suggested I bring it to this thread. Don't have the post, but I'll rebuild it.
Scully has my total sympathy. I can well imagine it happened pretty much as she's said. I know because I was taken by an online sociopath for several hundred thousand dollars and half my business. This "person"'s behavior is well-known in the industry, but she still does business as if nothing had happened.
Scully should prepare for Digger to have no problem continuing in business. Always, always, always have contracts but, even then, they're not worth much in the game of cat-and-mouse known as American (or Anglo Saxon, for that matter) business tortes.
She should get a good attorney - you get one you pay for with attorneys especially - and so should Digger, because the day is very shortly coming when "being in Australia" will be no defense at all against the "Anglo-Saxon Business Model" all the cutting edge economists are talking about today. And the current drafted legislation WILL be retroactive.
For anyone who's been victimized by an online conperson of one sort or another, I have a web page:
http://www.pay-dirt.com/cyberpath
It has links to information and resources - and it doesn't make a dime, so it's not a traffic leak, gfy folk.
Chin up, Scully. Digger, watch your ass.