I listened to the podcast for some reason, have some bullet points:
-Mystic Quest HD did actually exist and as far as they know, both MQHD and the original MQ remake people unearthed were made by him, albeit with assets and other assistance that he either stole or commissioned and didn't pay for. (S-E requested it be destroyed and they complied, but they can't guarantee he doesn't still have his own copy.)
-They say they legally "acquired" his company (including the RPG Maker-to-iOS tools he claimed to have that no-one ever saw) for $0; from the sounds of things, they only ever sent him $100 to buy a tablet or something and all their other expenditure came from having to take people off other projects to try and salvage MQHD.
-They say they went along with all his bullshit because they thought he wouldn't lie so blatantly about something that was so easy to disprove, and because they wanted to protect him from being exploited by S-E. (Not buying it.)
-When they asked for proof of his deal with S-E, he sent them a suspicious and poorly-written "contract" with what he claimed was a signature from Phil Rogers; when they questioned him on the contract, he claimed any errors or incongruities were down to the fact that it was a rushed transcript of a verbal agreement.
-When asked about S-E USA's public disavowal of MQHD, he claimed it was just a case of S-E USA/EU being out of step
-Both S-E USA/EU confirmed that they had no association with MQHD, and someone at S-E EU claimed that he'd actually visited their offices at one point and tried to pass off his bullshit contract to them as legitimate
tl;dr: dude was running a scam but he's also probably crazy to boot.
I have to say, the way they talk about this whole situation is kinda suspect, too--they never really give an adequate explanation for why they went into business to begin with, and they talk about everything so passively without ever acknowledging how fucking stupid you'd have to be to buy into any of this garbage. I almost thought they were trying to exploit him in case his contract did turn out to be real, but I look at their company website and think that they might just be marginally less inept than he was.