Ponzi Scheme Definition

pŏnzē
noun
A fraudulent investment scheme in which funds paid in by later investors are used to pay artificially high returns to the original investors, thus attracting more new investors and inducing earlier investors to venture even more money.
Webster's New World
A Ponzi scam.
Wiktionary

Other Word Forms of Ponzi Scheme

Noun

Singular:
Ponzi scheme
Plural:
ponzi-schemes

Origin of Ponzi Scheme

  • After Charles Ponzi (1882?–1949), Italian-born speculator who organized such a scheme (1919–1920)

    From American Heritage Dictionary of the English Language, 5th Edition

  • From Charles Ponzi, who famously conducted a pyramid scheme in North America in the early twentieth century.

    From Wiktionary

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Ponzi scheme