This is a classic fraud case that broke tons of laws already on the books.  It has nothing to do with big or small government.  Crooks have been stealing this way since Cain and Able.   

Enron went broke becausef California laws capped the price of electricity.  Unfortunately for Enron and its investors, there was no cap on the escalating costs that Enron was required to pay suppliers to supply that energy.  Enron was forbidden to increase prices to consumers to cover their shortfall which mushroomed causing its collapse.  The government actually was the culprit behind the crash.