Inquiring minds want to know.
I agree. Why are these people special? It is certainly said when people get fleeced - albeit when someone is offering unusually high returns, you have the onus to be extremely careful - but why should the taxpayers be on the hook to bail them out for their misfortune? Do we bail out people who lose money in casinos, or make other poor investments?
Not sure but I have been involved in one of these and in my case the funds distributed were from liquidation of the company’s assets. In my case 60% were recovered and returned.