The business idea is solid at its core but he describes getting turned down because he didn't superficially "fit" as a funeral director. People tell sob stories for little gain all the time, so I don't think telling a small one to get his company off the ground makes him a psycho.
De gustibus non est disputandum, I suppose. Faking crocodile tears over a family member's recent death is well over the psycho line for me, and "but he had to if he wanted to get money!" is not an especially convincing rebuttal.