Only invest what you can afford to lose. And, if something sounds too good to be true it usually is.
Plus, this is likely his account being hacked.
Seriously, if someone had something close to an ironclad trading system, why would they ever need $500 in capital paying an exorbitant return rate. They'd just further leverage their own profits, unless you are talking about people who invest hedgefund amounts where that insane amount of capital actually creates new trading options.