I see that hypotheticals don't typically go over to well on this SE site but I'll give this a shot.
EDIT: I originally posted as 'Ponzi' but I meant 'pyramid'
Was talking with a friend tonight about a hypothetical situation and the implications of full-disclosure on law and was hoping some of you might be able to settle the debate. (This is for US law btw)
Suppose I launched a company called Pyramid Scheme, inc. And we were 100% direct and transparent that this was a Pyramid scheme. We literally explained word for word that it is a Pyramid scheme:
You can put money in and we pay you out based on the next people that put money in after you. If you are stuck on the bottom rung you will likely not see a return, THIS IS A Pyramid SCHEME.
I know (I'm pretty sure) Pyramid schemes are illegal, but if you completely disclose it and are 100% open about it, is it still illegal? I'm not talking about the fine print either, I'm talking about very direct straight forward declarations, even to the point where the name of the company is 'Pyramid Scheme inc'.