I just think the made-up story they are telling, these lies, are usually variations and exaggerations of the stories told by "legitimate" players. It's interesting.
Laws, standards and people's brains need black and white. A line after which things are fraud, crime and such. But I think from the perspective of the scammers, they probably saw themselves as part of a spectrum. They probably pay more attention, compete with and emulate their neighbors on that spectrum. Little dodgy funds copy little legitimate funds. Little illegal scams copy little dingy funds. In the wild, the line between this and that doesn't exist. It's like the line between pirate, privateer, wrecker and merchant.