Then you should read some of the SEC's enforcement actions on what they perceive to be fraudulent Ponzi schemes My conclusion is that it is extremely relative.

Then you should read some of the SEC's enforcement actions on what they perceive to be fraudulent Ponzi schemes My conclusion is that it is extremely relative. The definition of "Ponzi scheme" is quite simple, because what Mr. Ponzi did was quite simple. It works until it doesn't. It doesn't matter if your reputation is 1 year old, or 20 and "one of the best", while you are able to pay investors nobody questions anything despite how obvious the source of funding is, if you are unable to pay investors and halt redemptions then you have a problem.