It seems like in a lot of these cases, there are plenty of parties who can intuit that something is wrong, but they choose not to dig any deeper because they're happy with the results of the way things are.
I wouldn't be surprised if ego entered in to it a little too on the not digging deeper side. "Clearly everyone else in the industry are idiots, or they'd be as profitable as we are".
I just think back to some of the stuff I listened to about the Bernie Madoff case where they were saying, essentially, that a lot of the bigger institutions bringing him clients had to have known something was up with the numbers, but they chose not to understand because they were making money and didn't want to rock the boat.
