: 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
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Rodney Phelps, of Somerset, was sentenced to 108 months in prison and ordered to pay a restitution of more than $2.4 million after involvement in a Ponzi scheme in 2020.
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Marina Johnson, The Courier-Journal, 13 Dec. 2024
Among them were: Gregory McKnight, 64, of Swartz Creek, who 13 years ago pleaded guilty to wire fraud as part of a $72 million Ponzi scheme, a term used for soliciting investments and promising high returns and then failing to invest the funds and pay off investors.
—Todd Spangler, Detroit Free Press, 13 Dec. 2024
This is a common thread in stories like Enron, Elizabeth Holmes and Theranos, or Bernie Madoff’s Ponzi scheme.
—Dr. Diane Hamilton, Forbes, 4 Dec. 2024
Prosecutors said Tuesday that after MJ Capital was shut down by the FBI and the Securities and Exchange Commission, Garcia, Ruiz Hernandez and others launched a new, similar Ponzi scheme in fall 2021.
—Kevin Breuninger, CNBC, 3 Dec. 2024
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Marina Johnson, The Courier-Journal, 13 Dec. 2024
Among them were: Gregory McKnight, 64, of Swartz Creek, who 13 years ago pleaded guilty to wire fraud as part of a $72 million Ponzi scheme, a term used for soliciting investments and promising high returns and then failing to invest the funds and pay off investors.
—Todd Spangler, Detroit Free Press, 13 Dec. 2024
This is a common thread in stories like Enron, Elizabeth Holmes and Theranos, or Bernie Madoff’s Ponzi scheme.
—Dr. Diane Hamilton, Forbes, 4 Dec. 2024
Prosecutors said Tuesday that after MJ Capital was shut down by the FBI and the Securities and Exchange Commission, Garcia, Ruiz Hernandez and others launched a new, similar Ponzi scheme in fall 2021.
—Kevin Breuninger, CNBC, 3 Dec. 2024
See all Example Sentences for Ponzi scheme
Dictionary Entries Near Ponzi scheme
Cite this Entry
“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 25 Dec. 2024.
Copy CitationLegal 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
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