Ponzi scheme

English dictionary entry

Meanings

noun
  1. A fraudulent scheme where earlier investors are paid with the money taken from new investors, giving the impression that the scheme is a viable investment.

Word forms

Ponzi scheme Ponzi schemes

Etymology

Named after con artist Charles Ponzi (1882–1949), who famously conducted such form of fraud in North America in the 1920s.

Synonyms

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