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the morality and honesty of what you describe are very poor. It sounds just like fraud to me.Well put. I had the same thought. It never pays in the end to not do the right thing.
Note that I said "not good karma in my opinion" and that I personally wouldn't do it. I was just saying that I know someone who did it. While morally not acceptable, it's not fraud, as REI does offer an unconditional money-back guarantee, which would presumably cover "changing your mind."
Much better to buy a used bike and then resell it at the other end on Craigslist, Ebay, or a similar venue.