Tate, like Madoff, is probably a sociopath. He started out with good intentions and when his real investments started losing money he made up fake ones because he couldn't admit failure. After a while the hole got too big.
I think a lot of people rob Peter to pay Paul and assume that they will make a big score and pay it all back without anyone knowing. Unfortunately, downturns in the economy, stock market, real estate etc. make losers out of very smart, successful people sometimes. I think Tate was in way over his head. He didn't have any real experience. I always wondered how he had the knowledge to do what he was doing. Apparently, he didn't.