I think it likely started with a small mistake, not necessarily an innocent one but maybe one that was assumed to be low-risk. And like in the Fargo movie/show, Sam just kept digging the hole deeper trying to get out of it.
This explanation seems pretty plausible from a game theory angle. The selfish cost of losing 1 billion dollars and losing 10 billion dollars for fraud is the same. Either way he is ruined and probably goes to prison, so he keeps gambling even if the odds aren't in his favor, and problem grows exponentially.
Altruism is a lot easier when it's not your neck on the line.
This explanation seems pretty plausible from a game theory angle. The selfish cost of losing 1 billion dollars and losing 10 billion dollars for fraud is the same. Either way he is ruined and probably goes to prison, so he keeps gambling even if the odds aren't in his favor, and problem grows exponentially.
Altruism is a lot easier when it's not your neck on the line.