: 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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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
But when the initial concept struggled, the duo faked bank records and continued to woo investors, creating what eventually became a Ponzi scheme.
—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
See All Example Sentences for Ponzi scheme
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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
But when the initial concept struggled, the duo faked bank records and continued to woo investors, creating what eventually became a Ponzi scheme.
—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
See All Example Sentences for Ponzi scheme
Cite this Entry
“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 27 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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