|Federal Trade Commission Deputy Director Jessica Rich . (Image credit: Getty Images via @daylife)|
A: Acme XYZ is a scam because of ____, ____, and _____.
B: Acme XYZ has not been charged by any government regulators! If it's illegal it would have been shut down by now/ long time ago! So it's legal!Technically, this is a "red herring", as it neither disproves the premise "Acme XYZ is a scam", nor does it prove the counter-premise "Acme XYZ is not a scam".
The fact (assuming it is true) that Acme XYZ has not been charged / convicted as a scam does not mean anything in itself. You can be a scam, and not be charged (or convicted). It simply means the government have yet to act. It does not preclude them from acting in the future.