That's an amusing and amazing cover ploy. That lady boss sure loves digging him deeper while 'helping' him.
I wouldn't buy it though. No way i'd have let family debt hit rock bottom like that. Better to pay it off and live with the scorn, then let everything crash and burn, pay it off, and live with the scorn.
Also, "say what you want, i'm rich you losers" is a perfectly fine deflection.
Sis is not too bright.