Lying about the numbers is never ok - when you ask people to take on risk for you it's inexcusable to be anything but transparent about what exactly they're taking on. The rest of the issues don't really surprise me, but dishonesty is a doozy.
Did they tell you that VCs were lining up for Series A? Because when you just say "you got the sense", you say little about what they said and more about how you perceived whatever they said.