Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- How to pronounce Ponzi scheme (audio)
: an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks

Examples of Ponzi scheme in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Continue reading … -- IN OTHER NEWS FOOL ME ONCE – Kevin Bacon is ‘more careful’ after losing money in infamous Ponzi scheme. FOXNews.com, 7 Apr. 2025 Maybe Musk should ask if all forms of insurance are a Ponzi scheme. Reader Commentary, Baltimore Sun, 1 Apr. 2025 Scandals such as Bernard Madoff’s huge Ponzi scheme discovered earlier this century and the collapse of the energy firm Enron a few years earlier are proof enough of that. Roger Trapp, Forbes.com, 28 Mar. 2025 Social security is the biggest Ponzi scheme of all time. Nbc News, NBC news, 23 Mar. 2025 See All Example Sentences for Ponzi scheme

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Time Traveler
The first known use of Ponzi scheme was in 1920

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Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 10 Apr. 2025.

Legal Definition

Ponzi scheme

noun
Pon·​zi scheme ˈpän-zē-ˌskēm How to pronounce Ponzi scheme (audio)
: an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability
Etymology

Charles A. Ponzi (ca. 1882–1949), Italian-born American swindler

Last Updated: - Updated example sentences
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