I hate to say it, but at this point

one of the best things that can happen to him is that he finds out just what happens when he doesn’t pay the rent on time (and I say that speaking, in part, as a former landlord). He doesn’t really see how the real world works at this point and he’s ready to believe whatever he’s told by his upline.

This is like alcoholism or any other addiction. He won’t stop until he hits bottom. The quicker he hits bottom (and how far down bottom is varies for a lot of people), the better off he’ll be. If he comes home one day to find an eviction notice on his door or to find he owes rent and late fees and all his wonderful friends can’t help him, he’ll start having to deal with reality.

Personally, I think, if that happens and he comes to you asking for money with bad credit payday loans, before he asks, you can fire a “preemtive strike” by asking him the questions you know he’s conditioned to answer in ways that indicate he’s doing well. Do you see what that does? First, before he can ask for money, you’ve gotten him to admit he’s doing well. You’ve asked him questions that you know they’ve trained him to answer evasively or dishonestly. He can’t ask for money at that point without admitting he’s lying. It also possibly helps him by getting him to realize what he’s said is lies and that those lies have just come back and bit him on his butt.

You have a point: this is something that could make him see what he’s wasting. Be ready to deal with what happens if he doesn’t and he keeps wasting his money on CDs and other tools. He could end up owing on all the utility bills and even being evicted. If so, you have a choice of paying the bills for him or letting him pay them himself. If you pay the bills or help him, then he has learned he has a blank check and should keep going until he’s rich. If you sit back and use tough love, he’ll start to learn that the power company, the landlord, and everyone else, doesn’t care about money he’s going to have, but what he has now.
A cold does of reality may be just what he needs.

I’m saying all this to remind you to brace yourself so if he doesn’t learn, drawing a tough line may be what it takes to wake him up.