Now, in the Paul Hinds case, it seems that there was a very polished presentation to lure people in.
Many ideas fail to come to fruition and investments are lost, not do to a scam but simply to failure.
In Mr Hinds case, his dishonesty and fabrication of credentials indicate the former.
So, in any case, were I an engineer, programmer or potential investor I would certainly need more info in the form of seeing a prototype, shop drawings or even doodles on a cocktail napkin before determining the viability of any project.
There is not enough info here to determine that this is anything other than an idea by a backyard tinkerer wanting to discuss his idea with others who have some expertise beyond his own.
If it is something more nefarious than that, I'm sure it will come to light.