It is all fraud, but if we're going to be charging all people like that with fraud, then freedom of speech becomes infringed to some extent. Many of these fraudsters genuinely believe what they're doing is legitimate and isn't fraud. Many of the clients genuinely believe it's legitimate due to their belief systems.
An argument could be made that people should be allowed to spend their money as they choose and that the government should not be in the business of deciding if they're spending their money wisely. Gambling is another example.