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 What clients, online sleuths and ultimately law enforcement found was essentially a Ponzi scheme, prosecutors said. Terry Castleman, Los Angeles Times, 11 Oct. 2024 Zoom in: The failures led to significant issues, including the facilitation of transactions in a massive Ponzi scheme, according to FinCEN, the financial crimes enforcement arm of the Treasury Department. Nathan Bomey, Axios, 10 Oct. 2024 Business For Subscribers City National, ‘Bank to the Stars,’ aided a Ponzi scheme, lawsuit says May 28, 2024 Amid the scrutiny, B. Riley in August marked down its investment in Franchise Group by up to $370 million and expects to record a loss of up to $475 million in the second quarter. Laurence Darmiento, Los Angeles Times, 2 Oct. 2024 Critics call the digital money a giant Ponzi scheme, which benefits no one except criminals. Laurent Belsie, The Christian Science Monitor, 16 Sep. 2024 See all Example Sentences for Ponzi scheme 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'Ponzi scheme.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Dictionary Entries Near Ponzi scheme

Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 30 Oct. 2024.

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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