If everything else he said was not truthful, why would the one truth be that the money was safely held by PayPal in a locked account?
My concern would be that:
1 - he has paid himself an annual salary that most here would object to(my understanding is that he has no other income or employment).
2 - he already paid himself his "profit" that he planned to receive on this venture
3 - he employed and paid family members for their services (again beyond what most would consider acceptable)
4- His business partners departure was over some of these issues - perhaps business partner felt he wasn't getting his fair share or profits were being watered down through payment to others
5 - money was used to travel well to many shows and events
6 - money was used to purchase the license for the second game, and pay expenses for the individuals to travel to whatever show that was.
7 - the money above was used to buy the new house.
8 - money was still being used to finance living expenses and possibly to engage an attorney or financial advisor to find a way to extract himself but still keep some of the remaining money.
Even if all of the above were true and occurred, it would be difficult to spend close to $1,000,000 but who knows.
Did anyone talk to his former business partner at the expo? Didn't the business partners wife or somebody connected to him post on this thread alluding to the reason he left (can't remember)? Remember, there was no legal entity as far as anyone has been able to discover, his business partner would generally have individual liability as much as he would.
If I had money in on the project, I would be concerned about how much has been spent and where was I in line for getting a refund. Those outside the credit card chargeback are essentially looking at sharing the losses from any spent money unless he refunds some fully and some partially or not at all