There is something strange about how this guy was able to cheat all these people. As I read the stories from the swindled, there always seem to be references to “get rich”, “get rich fast”....it may seem heartless but it keep hearing “you can’t cheat an honest man”.
Does it apply here I don’t know.
No con works unless the one being conned believes they can get something for nothing or that they are putting one over on the system. And yes some of them are victims because of gullibility. But that gullibility often means ignoring common sense and warning that something is not quite right.
Keep in mind that many of these folks have been invested with the guy for years — including some major up and down years in the stock market. In years when the stock market rose substantially, a 1% monthly rate of return in a hedge fund would have seemed almost disappointing — or at least “safe” in comparison to other alternatives.