TCJA took away casualty losses unless its due to a federally declared disaster.

Was this an investment that ended up being a scam?

Yes, it was a scam.  The women told him she needed medical help for cancer treatments. The women who took the money from him went to jail  and his lawyer said he could write if off.  I wasn't sure if this situation applied. 

Someone just hands over $200,000 to some stranger for cancer treatment?  I'm waiting for Paul Harvey to jump in and give the rest of the story.

So the answer is no, it wasn't an investment. 

A few years ago casualty losses were still allowed, but the lawyer hasnt brushed up on tax law lately it seems.