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Ponzi scheme

British  
/ ˈpɒnzɪ /

noun

  1. a fraudulent investment operation that pays quick returns to initial contributors using money from subsequent contributors rather than profit

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of Ponzi scheme

After Charles Ponzi , who famously perpetrated such a scheme in the United States of America in the early 20th century

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

In February, five people in a cattle business were indicted for an alleged $220 million Ponzi scheme.

From The Wall Street Journal • Jun. 7, 2026

How do I know that my money is safe with my financial adviser and feel sure they are not running a Madoff-type Ponzi scheme?

From MarketWatch • Mar. 30, 2026

In November, Trump pardoned David Gentile 12 days into a seven-year sentence after conviction for a private-equity Ponzi scheme External link that cost more than 17,000 people a total of $1 billion.

From Barron's • Jan. 20, 2026

But Epstein apparently tried to convince officials to shorten his Florida confinement claiming he was cooperating on the federal prosecution of Bernie Madoff, whose Ponzi scheme rocked Palm Beach.

From The Wall Street Journal • Dec. 23, 2025

They had the essential feature of a Ponzi scheme: To maintain the fiction that they were profitable enterprises, they needed more and more capital to create more and more subprime loans.

From "The Big Short" by Michael Lewis

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