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Unless the buyer/investor is told that he is putting money into a pyramid scheme, the solicitor is committing Geneivas Daas and Mekach Ta'us (misrepresentation), which is in this case a Grama (an entrance) into theft. In other words, it is a form of lying by default and stealing by intent.

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Q: What are some sins committed in a Torah standpoint by a ponzi scheme?
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