Sorry to see how this has played out. I agree, the follow-up posting from the "AG" is childish taunting, serves no purpose.
If Kevin has half a brain (no evidence of this) he will never ever say another thing publically about Skit B. If he is talking to a lawyer, it should be a bankruptcy lawyer at his point. Anything else is wasting the pre-buyers money. And a good bankruptcy lawyer would *not* advise him to issue refunds. Let the court sort out distribution of whatever is left over.
He files Chap 7, pre-buyers are listed as unsecured creditors (along with any potential outstanding claim by Fox) and whatever is left over gets distributed by the Trustee. Now - pre-buyers can always claim the debt exists as a result of fraud - which means it can't be discharged. But is it worth it to lawyer up and fight that? I don't know.
Best hope is that the Feds decide it's worth pursuing and get him in court (again, if this happens, no reason to hire a high-priced lawyer. You can't win in a trial against the Feds....). Feds enter a restitution order for payment in full to everybody. They *will* hound him for the rest of his life, and you get a check for 10 bucks or so every month for the next XX years.
The problem with that hope is that nobody (other than Kevin) will ever know the existence of a Fed investigation and/or plea negotiation. And it will take literally 2+ years to come to light. You could walk into the FBI today, confess to a white collar crime, and it could be months and months before they even call you again to have a follow-up interview. They move at their own pace.
I really hope he is stupid enough to start sending money out to the pre-buyers. But I'm not holding my breath.