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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:

Some have even argued that this makes the program a Ponzi scheme — although, by that definition, pretty much everything is a Ponzi scheme.

From MarketWatch Aug. 27, 2026

Cloth is also accused of engaging in a Ponzi scheme by using the acquired investor funds to repay prior investors.

From Los Angeles Times Jul. 29, 2026

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

To build confidence, it isn’t just about going after a Ponzi scheme, which we all agree we have to go after.

From Barron's Apr. 18, 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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