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
These examples are automatically compiled from online sources to illustrate current usage. Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Similarly to how no one advised investors to avoid stocks after Bernie Madoff’s Ponzi scheme, the usage of crypto to perpetrate scams and frauds doesn’t mean everyone should shun crypto. Laura Shin, TIME, 29 Oct. 2024 One is the Ponzo illusion (not to be confused with a Ponzi scheme, which is a financial illusion). Phil Plait, Scientific American, 18 Oct. 2024 Al Pacino has opened up about having to make drastic career changes at one point in his life after losing all his money in a Ponzi scheme. Carly Thomas, The Hollywood Reporter, 17 Oct. 2024 What clients, online sleuths and ultimately law enforcement found was essentially a Ponzi scheme, prosecutors said. Terry Castleman, Los Angeles Times, 11 Oct. 2024 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

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 14 Nov. 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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