Nothing surprising about this story. You see them on the news weekly, or in the developer trade very regular.
Build up a business, get all your subcontractors to spend heaps on your building, take deposits from unsuspecting clients.
In the mean time, ferreting of the money, to the wife or other non descripts, spend up big. Next day clear bankrupt, leaving yourself with heaps of money hidden away, but clients lost deposits and contractors in the toilet.
2 Days later, open up another development business, and repeat and regurgitate all over again. Its a common occurrence.