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

Jamie Dimon, ever the mouthpiece for traditional finance, maligned the industry as a fraud, a Ponzi scheme and a collection of pet rocks, among other colorful descriptors.

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He knew something that others did not: that he was operating a Ponzi scheme.

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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.

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This is a fictitious Ponzi scheme.’”

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Qian is believed to have coordinated a Ponzi scheme, which pays out to investors using funds from new entrants.

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