That's right! Bredow and the BOD may have been scammed into thinking that this was a quick, "shady but legal" way to make easy money with no risk but they certainly were aware that it was unethical at best and they were providing no real value to investors. They were willing to go along until the possible legal and personal financial ramifications were made clear to them.
They didn't give a damn how much investors lost. They STILL DON'T! Their concern is protecting their own asses not investors.