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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.

See Examples For:

However, Bernie Madoff was a fiduciary, and he violated the trust of his clients in a multibillion-dollar Ponzi scheme.

From MarketWatch Mar. 30, 2026

Last September, the Securities and Exchange Commission filed a civil lawsuit against Lopez and his partners, accusing them of running a Ponzi scheme, misleading investors and misappropriating $16.1 million.

From The Wall Street Journal Feb. 10, 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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