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

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

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

Then, at the age of 54, Allen Stanford, the now-convicted fraudster and his Ponzi scheme, happened.

From MarketWatch