Ponzi

American  

[pon-zee] / ˈpɒn zi /

noun

1. a swindle in which a quick return, made up of money from new investors, on an initial investment lures the victim into much bigger risks.

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Etymology

Origin of Ponzi

After Charles Ponzi (died 1949), the organizer of such a scheme in the U.S., 1919–20

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.

From The Wall Street Journal

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

From MarketWatch

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

From Barron's

After all, Sasha lost about $350,000 of the couple’s money in a Ponzi scheme a couple of years earlier.

From The Wall Street Journal

New Yorker Madoff conned tens of thousands of people around the world by running a shell pyramid, or Ponzi, scheme -- where new clients' capital was stolen to pay off existing clients and create the illusion of returns, until it collapsed.

From Barron's