That's kind of how it works. He may have friends of friends or met someone from a professional's organization that learn either what kind of business he's in or what kind of resources he has access to. Contact is made and a relationship is formed to the point where the guy feels comfortable doing all of this for a big stack of money. He might be lied to and told everything is on the up and up (or at least told it's a legal grey area) or he might be in on everything and know that he's breaking the law.