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From a philippine jail in 2001. rain charges, dropped. when we last spoke to carl, he told us dennis is a free man. rumored to be living in malaysia, and he has never been charged with fraud allegations made against him by carl and the other investors. the teacher got what he wanted. revenge. not just for how he was allegedly cheated. george rombach said carl had to hunt down dennis. it became carl's way of dealing with the loss of his father. >> he couldn't get on with the rest of his life without setting that straight. i am pleased he was able to get his life back and exonerate his name. >> ...

American named dennis standefer. >> i never anticipated he would do something like that. you know, he was trying to destroy everything i worked for my whole life, my reputation, my job. >> reporter: this was all no surprise to diver kirk shaffer who worked with standefer and had also allegedly given him money. that kind of fax, kirk says, is an old dennis trick. >> one of dennis' favorite terminology was called the nasty-gram. what would happen is that anybody that started to stir up any trouble or any pressure, of course, they were automatically the enemy. and that's where the nasty-grams wen...

Father. >> reporter: he felt crushed and betrayed. but this time, he was not alone. with kirk's help, he reached out to other investors. among them, george rombach, accountant and lawyer, who says he invested $30,000 for himself and clients with standefer. >> he's absolutely a danger to civilized society. no question in my mind about that. >> reporter: rombach says, that like karl, he was taken in by a smooth operator. he told tall tales very well. your impressions of the man the first time you saw him? >> first time i saw him they were not favorable. he's very affable. and very shortly, i alm...

For sunken treasure. he was now on a hunt for revenge, against dennis standefer, someone he says who took thousands of dollars from him in a treasure hunting scheme and then tried to silence him by faxing career-ending allegations to karl's school district. >> he thought this would probably finish me off. >> reporter: instead? >> it had the opposite effect. >> reporter: on the surface, teacher ryll seemed no match for the well-connected, wily standefer. a other investors, like george rombach and gene hasenbeck, said they, too, had been burned by the treasure hunter were worried. karl was becom...