Re: Is this like triple-A mortgages
I used to work in that industry. The trick is to make the thing gratuitously more complex until the legal system and then the regulators can't keep up with it.
The evidence is that when people are taken to court over fraud etc. that the cases get thrown out (because the judge doesn't want to look silly), or it is too hard to convince a jury that deliberate crime was committed because the complexity, and they empathise that the perpetrator accidentally made a mistake.
The sales technique is the usual one that the complexity is why it is better, why relies on magical / alchemy thinking. Other examples of this sales technique are crypto currencies, and radium cure-alls.
In Steviebucks example of the wrapping, it's derivatives of derivatives of financial instruments.