What is your view on this paragraph? Please see below.

Mr. Armstrong gained investors trust in many ways as per the SEC.He guaranteed impossible return on investment that were included in his "sales materials". He promised that the investments would be handled by a "successful commodities trader" even though he had been unsuccessful in prior transactions.He misrepresented himself into a position of trust with investors in order to perpetrate the fraud, with the help of Republic. If investors knew that Mr. Armstrong had faced government scrutiny prior to the scheme they most likely would have been more wary about investing with him. However, if they know he had actually been fined for misleading investors in the past there is little doubt that anyone would give him their money.Generally past behavior is an indicator of future behavior.Even though statistically people who commit fraud do not do it again, in this case the fine was minor (only $10,000) compared to the potential payoff of millions.