THEY DID NOT TELL INVESTOR THAT THERE MONEY WAS USED TO PROCURE STRIPPERS AND....

I am amazed  reading about this complaint to the SEC
exotic cruises with strippers and go go dancers.

I do not see how this is a ponzi scheme,do you?

Ponzi Scheme: Sex! Strippers! Unregistered Debt Offerings!
By Paul Kedrosky · Tuesday, April 20, 2010 · ShareThis
Possible the strangest (small-ish) Ponzi scheme ever was busted today by the SEC. It involved strippers, adult cruises, go-go dancers, illiquid companies, unregistered debt securities, and … oh, just read it. The SEC release is here, but you really have to scan the actual complaint to get the full flavor, as it were.

Some excerpts:

•The Defendants … used offering proceeds to … support McGinn’s and Smith’s lifestyle, and to procure strippers for a “sexually themed” cruise.
•The PPM did not disclose that … the affinity group was sexually oriented, that strippers and go-go dancers would be procured to entertain passengers, that investor money would be used to buy insurance for these individuals
•A MS&Co. broker reported to McGinn and Smith that there are “many people who refer to our deals as a Ponzi Scheme.”


http://sec.gov/litigation/complaints/2010/comp-pr2010-62.pdf