My Blown motor, and my friend's "explanation" Options

[italianmr2kid]

Ok i'm new to the boards and i thought i'd share my story. ANYWAY, recently i bought a full turbo kit for my N/A 1991 MR2 with 115k miles on it. Engine was in perfect working condition. I didn't have the time or the tools or the garage space to do the kit myself so my friend offered. He had the time tools and garage space. So i said ok. ok now i'm rambling long story short after two days of having my nice 7psi of boost my engine siezes. So naturally i'm pissed. After leaving my car on the side of the road for a day, a friend from work and myself tow the car to my work, put a wrench on the crank and nothin, thats when i see oil all over the oil pan where the gasket SHOULD be. So i call him and tell him that oil is leaking from the oil pan. He says its because my turbo was crushing my oil filter, (my turbo was pushing my oil filter down about a quarter of an inch but no oil was leaking anywhere near it) the oil pressure wasn't correct in the engine causing the oil to spew out of the oil pan. that didn't make sense to me so i asked him how he sealed the oil pan. he put NO gasket on it, he used JUST permatex, no not oil resistant permatex, high temp. he also used 2 bottles of permatex to "help" seal it, and he only let it cure for about 1 minute before adding oil and starting it. so basically his $5 mistake is costing me $6k. my question; does his explantion make any sense to anyone?

[Rayme]

So what happened...all the oil came out of the engine from between the oil pan and the block?