These scams and frauds are allowed to go rampant B

These scams and frauds are allowed to go rampant BECAUSE people consider it a waste of time to go after the cheats. If more investors would file complaints and provide the background for the SEC to investigate, the more likely they are to go after and levy fines or recommend for prosecution. If people are throwing $300 at an OTC thinking they are going to make a million, then yes, it's probably a waste of time. But having 50 investors file complaints providing some details on the fraud, claims made, or guarantees provides the SEC with a basis to consider investigating.

As far as recovery, it would probably be trivial but that would bw for the civil courts unless the individuals are recommended for federal prosecution. At that point, the government would collect and reimburse accordingly.