The investments were lucrative
it was Ribotsky's lifestyle funded by the company that was the problem.
Toxic lenders like NIR operate in a world of nearly guaranteed profit. The funded companies don't need to be solvent, only have a stock that trades. NIR gets stock at a 30-50% discount and as long as they can sell fast enough to cover the discount it's guaranteed profit
Take IGNT. Typical pennystock scam. NIR gave them a $2 million CD. Over the years IGNT paid sporadically, triggering default provisions and penalty amounts and over time paid $2 million in payments. They went dormant still oweing NIR approx $2 million. this is over the course of about 3 years.
If NIR was valuing the transaction based on principal owed, that note kept going up in value even as payments kept coming in. Took 3 reverse splits to fund those 2 million in payments, but the stock traded well until the CEO went to prison 
Things got a little thin after that. lol
#1). You have money. Other people want it. All of it!
#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter,
