I think its a little bigger than this.
On a site that posted the relevant information, it claimed to have called up or emailed certain companies in Japan, asking to see if Foley had negotiated the rights to certain games. They said No... had never heard of him.
On that webcast... he mentions that when he couldnt get the rights... he went online to ebay, and bought older PCBs for the roms. He figured that if he has the PCBs... he should own the rights to the games. Everyone wants to believe this... but Im not so sure that is the case... most especially when you are re-packaging something commercial for sale. Imagine trying to sell a used Sega Genesis game in a new bartop arcade box at Sears, without asking Sega... but just putting the cartridge inside the thing.
Then to find out on top of the fact most of his games couldnt be used, rendering his business model near useless... he finds out that his Former is cashing in on his remaining territory.
Because the IP was overseas, it makes it an International crime... and because Global VR may not have known that over half their IP was bogus... (and now the info spread all over the net about it) calling the FBI just may be within bounds.
Its quite slimy, to say the least.
Ohh, and no, hes not the one behind 4k tvs. He just managed to capitalize on a MGFs faulty chip, and used another MFGs chip to get his foot in the door.