They believed they had found a way to eliminate financial market risk and became high leveraged, borrowing $40 for ever $1 of capital (meaning if the market value of their holdings declined 2.5%, they were bankrupt).  

I just don't understand after all the damage they've done ruining people's lives, bankrupting people, taking their life savings law enforcement just gives the a pass.

Then it went bankrupt.

If it costs another $2 million to finish and is worth $1.5 million, you've just bankrupted yourself and any partner you've taken along with you.

Guy Laliberté owned a small circus group that was about to go bankrupt. 

Overall, each town and each investor will need to pull together a number of options to create what everyone deserves - a clean, habitable home that doesn't bankrupt the family vs. a reasonable rate of ROI... not easy - but "doable". 

The fine could bankrupt you, and the guilt for causing irreversable illness could be worse.

It's not that simple math is wrong, it's just that you can open your mind up to much more possibilities, like investing in appreciating markets, once you become knowledgeable about 2 things, 1) Sophisticated Math and 2) Economics so you can read the future of the market.Personally, I don't know how any Investor doesn't want to learn enough about Economics to get a gauge on how the next 10 years in their specific Area of investing may turn out.Will it be like Detroit, which went bankrupt but you could easily have seen that if you paid attention to the 3 Big Auto Makers?

LIMITED LIABILITY COMPANIES□Do you have an operating agreement that defines the relationship between the company and between members and what happens if the arrangement needs additional capital, there is a disagreement between co-investors or one of the co-investors becomes insolvent, goes bankrupt, divorces, becomes incapacitated or dies?

Save up for a down-payment/closing costs/rehab, pay down your debt, get your DTI (Debt to Income) ratio at a good level so obtaining financing will not be an issue.Do not go bankrupt on your first deal, have an emergency fund in place.I think it's crazy to jump in without working on the above first.