I don't know, I was pretty foolish when I first converted, I don't deny it, but to give up ALL your money, that entails a bit of research, you would think. And if the Dimonds falsely represented themselves to get the money, how could they possibly have won in court?
Surely Eric, since he was sedevacantist, knew that they had no ties to the "official" Church, as he would not have believed it was the official Church anyway. He could also plainly see that they have no community of monks and that they don't get along with anyone.
Going so far as to desire to be a sedevacantist monk takes a little bit of knowledge about the situation.
His decision to give them all his money is totally mystifying to me. I can't see how, even in a burst of naivete, someone would do that. Of course the Dimonds should have given him back his money, but that isn't easy. You try getting a million dollars and then handing it back, especially if there is ANY rationalization that you think might justify it.
If a layman even says that he wants a million dollars for someone to live with him and pray with him, if the other person agrees, what legal recourse is there? They do have some sort of mesmeric power over certain people, like Rasputin; but that won't hold up in court.