In my five years in web publishing (not necessarily adult) I have found that what goes around comes around really holds true. However, as others here stated, giving this guy the money might not be helping him in the real sense of the word. Maybe if you tell him you are interested in becoming an investor and want to see a valid business plan, you might be able to help him see the flaws in his plan and avoid future problems. I'm sure that the last thing he wants is to take your money, fail and then owe you.
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