The Time Machine?

I Heard from a source I personally consider to be reliable about a "Time machine" that had been invented in secrecy. To understand this theory (i'm calling it a theory because my source offered no more proof than his own word) you must understand the effects of electro-magnetics and the effects it has on light. If you take a powerful enough electro-magnet and set it on a table and shine a laser-sight over top of it, the beam of light will bend down once it goes by the magnet and will arc down to the table. His theory was that there was a metallic ring, lined with extremely powerful electro magnets and a single beam of light was pointed threw the center of this ring. This created a spiraling effect within the ring. He said they put a piece of paper threw the ring and it vanished. Nothing other than paper can travel into wherever the device goes. If anyone has any information that could prove/disprove this theory, i would much appriciate it.

What has always got me about time travel is the physical disappearance and appearance in the different times. Do you stay in the same spot when you appear? In relation to what? Even if I flashed an hour forward or back, I could either be thousands of kilometres beneath the earths surface or thousands of kilometres out into space.
And why does this machine only work for paper? Does paper have some special property in the way it interacts with electro-magnets? Why couldn't I just stick my arm in it?
Also, light is a lot different from paper. Making a beam of light bend is a lot different to making physical matter disappear, and making physical matter disappear is a lot different to making it travel through time.

I remain skeptical.