Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- 

: 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

Musk’s incendiary commentary has only fueled public anxiety, including his comment about Security being the biggest Ponzi scheme of all time. —Shahar Ziv, Forbes, 13 Mar. 2025

Behrs played the role of Caroline Channing who becomes a waitress after losing her wealth following her father’s imprisonment due to a Ponzi scheme. —Armando Tinoco, Deadline, 11 Mar. 2025

The operation fits the classic definition of a Ponzi scheme where someone takes money from investors for a fraudulent business product. —Michael Loria, USA TODAY, 11 Mar. 2025

Being two-faced on your intent to preserve Social Security and Medicare, calling it a Ponzi scheme as Elon Musk did, is outrageous and a tell for future actions. —Letters To The Editor, Orlando Sentinel, 7 Mar. 2025

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Rhymes for Ponzi scheme

• academe
• cherubim
• elohim
• episteme
• seraphim
• abeam
• airstream
• bloodstream
• daydream
• downstream
• esteem
• extreme

Legal Definition

Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē-ˌskēm 

: 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