I'm sorry to hear that they managed to "hook, line and sinker" your friend. The only best way to handle it is via the FTC (If you're in the US) or your appropriate goods and trade ombudsman. Use this post as a tip off, and try to convince your friend it's a scam.
I'm gonna do a whois on the site and see who the registrar is, we might be able to bring down their site.
For further reference I recommend using hxxp://domainwhitepages.com to do a whois on the domain.
Edit: he/she may receive the money, but very little of it as a majority goes to the people higher in the chain. It's exactly how Arbonne and Amway works.
ABC's The Checkout here in Australia did an awesome video on pyramid schemes, which you can watch here: hxxps://youtu.be/z3gNTBNpG6A