I just read this whole thread and I so wish your friend had listened to you. I'm so sorry for your friend. There are some terrible people in the world.
I talked with a friend of mine who is a lawyer, and he said, the laws are there to protect people, but the laws cannot protect individuals from themselves.
My friend willingly gave this man her money. He said he would pay it back and created a "promisary note". Legally she has no ground to stand on. She trusted this man and took all of her hopes for an early retirement for these fake investments. To be honest, she got greedy. Regardless of the red flags, the promise of early retirement was drive enough along with the fact that she was in love with him. Many broken promises.
Now you have someone who is a few years from retirement with no assets, no savings, no home (she sold her home to have cash to give him, then moved into an apt.) and no credit.