They enter a quickly spiraling fraud that goes way beyond their control.Level 5 - The sponsor, originally intending to operate honestly, enjoys an initial period of great success leading them to significantly changing their lifestyle and incurring a lot of debt for mansions, yachts, trophy spouses, etc.  

Liquidate a small portion to stabilize and protect the larger portion, avoid going into a downward spiral at all cost.

I see this with the crowd funders that grew too quick ( realty shares comes to mind)  and did not have enough support staff to communicate with their investors and that leads to internet chatter most of it not good and it can spiral out of control..

Our understanding is it spirals from there and ultimately results in the structure no longer being grandfathered mainly due to the level of unpermitted work that was performed.

Hopefully after what happened in Maui, that won't create the downward spiral for HI.

It's a downward spiral.

Water issues can spiral into a serious of investigations to figure out where it's coming from.

Sorry if I went off on a spiral there. 

This starts a downward spiral from which few cities have recovered.The most important metric is crime.

When you gut a space, costs spiral exponentially because you need to bring everything up to current code!