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

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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

I fantasize about all of us sending small donations to each other, picking a new American each week to fund until everyone in the lower and middle classes is freed from the Ponzi scheme of American health insurance.

From Slate

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

The director of bank supervision at the Iranian central bank last year called Ayandeh “a Ponzi scheme.”

From The Wall Street Journal

“He’s not running a mill creating fake paintings or running a Ponzi scheme,” Wynne says.

From The Wall Street Journal

Would it have been another Allen Stanford, the now-convicted fraudster who operated a multibillion-dollar Ponzi scheme?

From MarketWatch