Like the other guy said, I am against fraud. If there is no fraud (intentional deception), a Ponzi scheme should be legal, but 99.9% of times, a Ponzi scheme in

Like the other guy said, I am against fraud. If there is no fraud (intentional deception), a Ponzi scheme should be legal, but 99.9% of times, a Ponzi scheme involves fraud. When you engage in trade with someone, you are implicitly or explicitly authorizing them to come after you with the force of the law if you have intentionally deceived them. Note that the government isn't, anyway, necessarily capable of policing Ponzi schemes, because it's not omniscient. Madoff was regulated by the SEC, which gave some of his investors false confidence.