: 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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The Bernie Madoff scandal is considered the biggest Ponzi scheme in history.
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Kelly Phillips Erb, Forbes.com, 16 Aug. 2025
Kevin Lamarque | Reuters Two men have been indicted in New York on federal criminal charges in connection with a water vending machine Ponzi scheme that allegedly swindled investors out of more than $200 million, the Department of Justice said Thursday.
—Dan Mangan, CNBC, 14 Aug. 2025
The scheme came to an end when a whistleblowing director tipped off the FBI that the company had become a Ponzi scheme.
—Alexandria Burris, IndyStar, 13 Aug. 2025
According to prosecutors, the entire operation was little more than a Ponzi scheme.
—Lily Mae Lazarus, Fortune, 24 July 2025
See All Example Sentences for Ponzi scheme
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Kelly Phillips Erb, Forbes.com, 16 Aug. 2025
Kevin Lamarque | Reuters Two men have been indicted in New York on federal criminal charges in connection with a water vending machine Ponzi scheme that allegedly swindled investors out of more than $200 million, the Department of Justice said Thursday.
—Dan Mangan, CNBC, 14 Aug. 2025
The scheme came to an end when a whistleblowing director tipped off the FBI that the company had become a Ponzi scheme.
—Alexandria Burris, IndyStar, 13 Aug. 2025
According to prosecutors, the entire operation was little more than a Ponzi scheme.
—Lily Mae Lazarus, Fortune, 24 July 2025
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 20 Aug. 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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