I have heard first hand the entire story, and there was also a witness to the event whom jeffcat was speaking with during the entire process.
There is no doubt in my mind what happened. I will repeat what I said earlier. Setting someone up to be conned, is no different than the person who actually did the deed. In a case like this, it's actually worse.
I am totally amazed this person doesnt hand over a stitch hat and say sorry. We all know he has the means to do so easily.
Would it bring back trust? nope. Would it change any opinions? probably not. But, it would sit in the back of everyones mind, that in the end this person at least has a conscience and better late than never to do the right thing. That would be the first step in starting over.