PON-Z, the world's first honest ponzi scheme. Using bitcoin.

This raises an interesting question. I wonder if explicitly labeling itself as a Ponzi scheme precludes it from being technically classified as a Ponzi scheme.

Is it still technically fraud if you walk up to someone on the street and say: "Hey, I want to defraud you, so I'm pretending to be your bank. I need interest on that thing you did. Pay up please?"

Is this legal?