The reason she did not see the red flags is because that's what being conned looks like. They don't call them con artist for nothing, and he seems up the chain on mastery.
I went through a similar experience. In hindsight the red flags were extremely obvious but I was also in extreme denial. I really wanted it to be true and was not willing to face whatever I would be able to dig up. So I didn't try. Paychecks were bouncing and I was still clasping onto the sliver of hope in order to not lose the job.
I was (am still am) a new grad with no experience but I had co-workers with families and responsibilities. We all wanted it to be true too badly and willfully ignored the warning signs.
