Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- 

: 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

Recent Examples on the Web

Ari Lauer pleaded guilty in October 2025 to 23 counts of fraud in the case of DC solar, a Benicia company that served as a front for a nearly $1 billion Ponzi scheme that duped major corporations and sophisticated investors including Berkshire Hathaway chair Warren Buffett. —Sharon Bernstein, Sacbee.com, 10 Mar. 2026

Federal agents allege Goliath Ventures was a Ponzi scheme that defrauded investors in Central Florida and elsewhere of $328 million. —Stephen Hudak, The Orlando Sentinel, 3 Mar. 2026

He is now accused of soliciting investors to the firm in what investigators call a massive Ponzi scheme. —Olivia Rubin, ABC News, 26 Feb. 2026

Our debt is a giant Ponzi scheme. —Les Rubin, Boston Herald, 25 Feb. 2026

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Rhymes for Ponzi scheme

• academe
• cherubim
• elohim
• episteme
• seraphim
• abeam
• airstream
• bloodstream
• daydream
• downstream
• esteem
• extreme

Legal 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