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Ponzi

American  
[pon-zee] / ˈpɒn zi /

noun

  1. a swindle in which a quick return, made up of money from new investors, on an initial investment lures the victim into much bigger risks.


Etymology

Origin of Ponzi

After Charles Ponzi (died 1949), the organizer of such a scheme in the U.S., 1919–20

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 the 1990s, John Bennett and his New Era Philanthropy, a Ponzi scheme, bilked an ex-U.S.

From The Wall Street Journal • Jun. 30, 2026

“Thankfully, tax laws allow for deductions for Ponzi scheme victims,” Wu said.

From MarketWatch • Jun. 8, 2026

Philip Wu, a Chicago-based enrolled agent with the IRS who prepares taxes for clients, tells of a client who was victimized by a Ponzi scheme and lost a bundle.

From MarketWatch • Jun. 8, 2026

And Weizhen Tang, who calls himself a “Chinese Warren Buffett” in a LinkedIn profile, was convicted in 2013 of defrauding customers in a $50 million Ponzi scheme.

From The Wall Street Journal • Mar. 19, 2026

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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