I am pretty sure all of the people he ripped off didn't get their money back. He is not square with them.
You might be confusing him with Adam Judd, aka Dave Adams (alias) of Ram Controls fame.
Dave Foley is the guy behind the commercially sold Ultracade multi-game arcade machine.
He pissed a lot of people in this hobby off when he tried to trademark the name MAME for himself.
(he claims it was to protect the name, others claim it was to prevent his competitors from ever using it)
Other than that, he really hasn't done anything against the arcade community.
He has announced arcade related products and failed to deliver, but unlike Dave Adams didn't take money for pre-orders.
If you're an investor in his penny stock (NTEK), you might have other things to complain about....and they do.