I'm an attorney and I've worked on fund raising for a lot of legitimate start up companies and start up projects. What this guy described has so many red flags that it would take a long time to describe them all. To start...no one who is legitimate can "guarantee" 5% returns in the market today. This has fraud written all over it.
He's not doing you any favors by asking for your money. Personally, if my home teacher proposed this to me, I'd ask the EQ president to get me a new home teacher. I'm not kidding.
This is so far out there...am I missing something? Is this a reverse post that I missed?