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

The prison has become an unexpected final chapter for some of America's notorious figures, including Ponzi scheme mastermind Bernie Madoff and mob boss John Gotti. —Stephanie Giang-Paunon, FOXNews.com, 17 June 2025

Federal prosecutors previously described Avenatti as running what was essentially a sophisticated Ponzi scheme to fund his lavish lifestyle. —Sean Emery, Oc Register, 12 June 2025

Federal officials said Bitwise resembled a Ponzi scheme and collapsed before that could happen. —Justin Muszynski, Hartford Courant, 4 June 2025

The guy from The O.C. is the one trying to take down this trillion-dollar Ponzi scheme. —Georg Szalai, HollywoodReporter, 3 June 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