: 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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But when the initial concept struggled, the duo faked bank records and continued to woo investors, creating what eventually became a Ponzi scheme.
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Sharon Bernstein, Sacramento Bee, 7 Jan. 2025
The fund disbursing money to the victims of Bernie Madoff’s legendary Ponzi scheme began its 10th and final distribution on Monday, putting another $131 million in the pockets of swindled investors.
—Aaron Katersky, ABC News, 30 Dec. 2024
Chris Hondros | Getty Images The 10th and final distribution from a fund for victims of the late Ponzi scheme king Bernie Madoff began Monday, the Department of Justice said.
—Dan Mangan, CNBC, 30 Dec. 2024
The fraud was the largest Ponzi scheme in history, with nearly 41,000 recipients ultimately qualified for payments from the Madoff Victim Fund.
—Brady Dale, Axios, 30 Dec. 2024
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Sharon Bernstein, Sacramento Bee, 7 Jan. 2025
The fund disbursing money to the victims of Bernie Madoff’s legendary Ponzi scheme began its 10th and final distribution on Monday, putting another $131 million in the pockets of swindled investors.
—Aaron Katersky, ABC News, 30 Dec. 2024
Chris Hondros | Getty Images The 10th and final distribution from a fund for victims of the late Ponzi scheme king Bernie Madoff began Monday, the Department of Justice said.
—Dan Mangan, CNBC, 30 Dec. 2024
The fraud was the largest Ponzi scheme in history, with nearly 41,000 recipients ultimately qualified for payments from the Madoff Victim Fund.
—Brady Dale, Axios, 30 Dec. 2024
See all Example Sentences for Ponzi scheme
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Cite this Entry
“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 7 Feb. 2025.
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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