Excuse the sarcasm.
Some of these mfg. simply don't have enough business experience to correctly anticipate the delays, cost over-runs, overhead. It may start with a good plan (not fraud) and simply got away from them.
When you realize you won't get your investment back, you begin to... shall we say, exaggerate delivery dates, features, etc., and then on to bankruptcy.

The "tell"? Way too cheap.


Boffin Emeritus