If this is a one time thing, than chances are big that the member took on some work he was not able to manage and there was no bad intention at the beginning. If everybody has been refunded, than I see no issue. These things happen. I also was in some runs in the past that eventually didn't happen.
If this way of working is repeated several times by that same member, than that's another story, but if it's a one time thing, I would just accept that these things happen.