I lean towards the 'stupid' side. Feel free to quote me. But that's your words. I think he was sincere, just over his head and learning more than he was achieving on knowledge.
Again the entire story is boring as hell other than the $1.7
Mike K should just give Joe a note and be done with it. Joe can sell that note to another that is high on landmines.
Time to move on. This thing is like a wound that wont heal. Scabs picked at will do that!