So paying the old investors with the new investors money is going on, but we're going to argue over the semantics of fraud or intent to deceive.
Okay. Not interested.
Another brilliant post by Lurker.
The definition of a ponzi scheme:
a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
Of course, fraud has no bearing on discussion of a ponzi scheme... Bravo.