Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- 

: an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks

Examples of Ponzi scheme in a Sentence

Recent Examples on the Web

With the Ponzi scheme charges resolved, law enforcement turned their attention to the death of Michael Cochran and exhumed the body. —Steve Weisman, Forbes, 1 Mar. 2025

The crime, which federal prosecutors have described in essence as an art-world Ponzi scheme, began in 2018 and involved some 55 artworks. —Sarah Maslin Nir, New York Times, 18 Feb. 2025

Prosecutors argued and investigators testified that Natalie killed Michael to prevent her Ponzi scheme from being exposed at a bank meeting scheduled the day Michael fell ill. —Doc Louallen, ABC News, 14 Feb. 2025

The Sun spoke with investors from Maryland and Pennsylvania, alleging a widespread, massive Ponzi scheme. —Kate Cimini, Baltimore Sun, 13 Feb. 2025

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Rhymes for Ponzi scheme

• academe
• cherubim
• elohim
• episteme
• seraphim
• abeam
• airstream
• bloodstream
• daydream
• downstream
• esteem
• extreme

Legal Definition

Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē-ˌskēm 

: an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability

Etymology

Charles A. Ponzi (ca. 1882–1949), Italian-born American swindler