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

---

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

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

Your experience with Allen Stanford, who is currently serving a 110-year sentence for his multibillion-dollar Ponzi scheme, has changed your life.

From MarketWatch

“I mean, you take a 10%, 20%, 15% of a guy’s NIL money, that’s Bernie Madoff level,” Cronin said Friday, referencing the crooked financier who was convicted in a massive Ponzi scheme.

From Los Angeles Times

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.

From The Wall Street Journal