Baltimore,
The sad fact of galus is that sometimes the only way to protect communities from criminals within, is for justice to be administered through the secular courts. Case in point, a number of years ago, the Rabbonim in your community signed a public letter stating that they were not in any position to protect the community from abusers and that if someone had good reason to believe that a person was an abuser, they were obligated to report them to the authorities. This admission came after years of the Rabbonim ineffectively handling this issue, with very tragic results. Similar cases within MO, Yeshivish and Chassidish communities were only effectively dealt with by the secular justice system. Unfortunately, too many abusers and crooks know how to manipulate Batei Din and frum sympathies to further their own nefarious misdeeds.
If Joseph wants to give away all his money for this type of “pidyon shvuyim” and invite these “victims” to stay in his basement, that’s his business. However, he’s a troll and no authority on Halacha, secular law, or anything else for that matter, so you should be asking someone who is.