Phil,
I honestly think that he managed to convince himself about a number of things:
1. That he was a suitable postholder for an AOC.
2. That an AOC was a foregone conclusion and would be approved (and that he'd get the money for the application fees from somewhere).
3. That the investors would back him up to the tune of millions of dollars (to be fair he had the crew convinced of this too). To this end the investor produced a document relating to monies held in a Dutch bank in the name of the (then) holding company. It DID seem plausible at the time.
4. That pending the AOC he would take delivery of several aircraft from the Baron through C340 to a CJ2. These would require crewing, and he thought he could just operate regardless of AOC approval, and get away with it.
5. That pilots would do as he said and hang off his every word regardless of safety or the law.
I suspect he is still convinced of a number of these facts, and that the reality will never touch him.
My own opinion is that the investor has realised that he is not suitable as postholder, or business manager, that a lot of the claims were fabricated, and is unlikely now to back him even if (and it seems a big 'if') the investor had the money he claimed.
In the meantime I have heard that he is now propagating the rumour that he is a benevolent being who only did all this to create jobs for low hours pilots, and that we have all stabbed him in the back.
Question is, does anybody believe him anymore?