The last few posts make dire reading. As an Accountable Manager of a CAA and EASA ATO it is sickening to see (published Companies House accounts) how the ATO mentioned in previous posts has geared its business. On the face of it, nothing short of a ponzi scheme.
Two points that stand out to me;
Firstly, an Accountable Manager (the main post holder within the ATO), in accordance with Part ORA, is responsible for 'the management of all financial and budgetary matters' Therefore, if deemed necessary the regulator should interject. The reality and history shows that this does not happen. It is also required that in accordance with UK Government law that directors hold fiduciary duties of responsibility - this means the company must remain solvent!
Secondly, in my opinion, Pprune is a bit of a dinosaur now a days. Prospective commercial pilots do their research mainly on Instagram. The ATO mentioned above seems to be a master of Instagram marketing and therefore can maintain throughput (and cashflow).
Until the front of the 'machine' (new student intake) dries up, the ATO will continue to pay Peter with Paul. With the industry gathering good traction at present, it will take for a more public medium to have such effect.