Ponzi scheme

/ ˈpɒnzɪ /

noun

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

Word History and Origins

Origin of Ponzi scheme¹

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

Example Sentences

Speaking at a fringe meeting at the Conservative conference in Manchester, Ms Ibrahim branded the triple lock a "Ponzi scheme" - a type of investment fraud which pays profits to earlier investors with funds from more recent investors.

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After a months-long investigation, authorities have arrested a Hemet woman of suspicion of extracting nearly $200,000 in a “Ponzi scheme” involving her wholesale avocado business.

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However, sheriff’s deputies say Carrasco-Ramirez engaged in a Ponzi scheme with the investment fund — a scam wherein earlier investors are paid off not with company profits but with the cash of later investors, which creates a false impression of growth and leads to additional investment.

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QNET, a global lifestyle and wellness marketing company allegedly linked to the recruitment scam, has been banned from operating in Ghana since 2022 for allegedly running a Ponzi scheme.

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“We remain hopeful that the other criminals who helped Girardi pull off the largest Ponzi scheme in the history of the plaintiff’s bar will also face disbarment and long prison sentences.”

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