Sent BTC from Coinbase, blockchain explorer says Confirmed. Is recipient lying or could something else be the issue? Sent BTC (approx $500) from Coinbase,  Blockchain explorer says Confirmed. Is recipient lying they have not received or could something else be the issue such as his wallet?
Recipient says it could be because his 'hard' wallet is set up in a way so it activates/acknowledges/receives with $1000 transaction minimum? 
He is meant to send back a larger payment to my wallet ( from which i sent the payment) as part of some investment returns. Don't want to think i'm being scammed so giving the benefit of the doubt and seeing what the community answers with.

https://www.blockchain.com/btc/tx/8fc6a9b6a4678efa77d07c959652e2cd7a5c2a7a00b948766d6bcd551bcffec4
Is recipient lying they have not received or could something else be the issue such as his wallet?


Seems likely in this case.


  Recipient says it could be because his 'hard' wallet is set up in a way so it activates/acknowledges/receives with $1000 transaction minimum? 


This is not a thing, you're almost certainly being scammed. Wallets don't require activation or acknowledgement to receive coins. If you sent coins, and the tx is confirmed, the wallet has received it.


  He is meant to send back a larger payment to my wallet ( from which i sent the payment) as part of some investment returns.


This is 100% a scam - Do not send this person any more money and cut your losses now.