: 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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Similarly to how no one advised investors to avoid stocks after Bernie Madoff’s Ponzi scheme, the usage of crypto to perpetrate scams and frauds doesn’t mean everyone should shun crypto.
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Laura Shin, TIME, 29 Oct. 2024
One is the Ponzo illusion (not to be confused with a Ponzi scheme, which is a financial illusion).
—Phil Plait, Scientific American, 18 Oct. 2024
Al Pacino has opened up about having to make drastic career changes at one point in his life after losing all his money in a Ponzi scheme.
—Carly Thomas, The Hollywood Reporter, 17 Oct. 2024
What clients, online sleuths and ultimately law enforcement found was essentially a Ponzi scheme, prosecutors said.
—Terry Castleman, Los Angeles Times, 11 Oct. 2024
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Laura Shin, TIME, 29 Oct. 2024
One is the Ponzo illusion (not to be confused with a Ponzi scheme, which is a financial illusion).
—Phil Plait, Scientific American, 18 Oct. 2024
Al Pacino has opened up about having to make drastic career changes at one point in his life after losing all his money in a Ponzi scheme.
—Carly Thomas, The Hollywood Reporter, 17 Oct. 2024
What clients, online sleuths and ultimately law enforcement found was essentially a Ponzi scheme, prosecutors said.
—Terry Castleman, Los Angeles Times, 11 Oct. 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 30 Nov. 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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