Government always are full of con people who take advantage of weak laws, strong lobbyists and lots of money being spread around. Regulators (or even tax agencies) are weakened by politicians who want to enrich themselves, and everyone hopes it's the next person that gets caught. Bernie Madoff got away with his fakery for an eternity. These folks almost got away with it too (one is still on the lam). You have to have watchers (and someone to watch them, and hopefully a press that also watches).