I just do not see your arguement that Lee was getting the short end of the stick, who cares how the shares came about, Lee knew the deal when he signed the agreement.
If this is a real device and Lee honored his end of the deal and things occured when planned the PPS could be well over $1/share. That is 541 fricken million dollars in Lee's bank account. I don't get your arguement and disagree with what you are saying.
This may end up being a scam, but your arguement is flawed. The 541 million shares at any price is a hell of a windfall for Lee and would have made him a uber rich dude.