I have recently learned just how common this situation is, most...

I have recently learned just how common this situation is, most often fraudulent companies will look for a buyer (sucker) as the wheels fall off.

In the case of Quindell this was Gretchie and his SGH bagholders.
To me it always comes down to self responsibility rather than transferring risk through insurance, I have made plenty of investing mistakes and am vulnerable to more like everyone else. Many of the best shortsellers started out buying a fraudulent company and the anger drove them to righteous vengeance.

I am preferring this track but each to their own and GLTA.