I also have huge sympathy for the pilots caught up in this. Given the way the industry is allowed to run recruitment it's no surprise that some wannabes, all of whom are highly educated people who know the risks, shell out vast amounts of their own money in the hope of getting a job.
In my view this sort of thing should be illegal. Consumers get protection from cowboy operators through ATOL etc. The government thinks endless expansion of air transport is a great idea. They should step in to provide tighter regulation of pay-to-fly schemes etc.
NS