Sanswired would you pay an Invoice that was for something very specific, and that specific was not performed. Assuming the emails are correct, he openly admits he did not perform what he agreed to do. He has a reason for non-performance so he feels he should be paid? Then he threatens to notify the SEC if his invoice isn't paid, this is extortion. The fact that he followed through is of no consequence to his threat as his intent was not to right an universal wrong, but to get paid for his trouble. When he didn't get his money he, in spite, notified the SEC.
If I were Sands, I'd change my name.