: 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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Three class-action lawsuits, including one against banking giant JPMorgan Chase, have been filed in connection with the massive cryptocurrency Ponzi scheme prosecutors say Christopher Delgado ran from his Orlando headquarters.
—
Silas Morgan, The Orlando Sentinel, 14 Mar. 2026
Critics of Social Security have long compared the pay-as-you-go structure to a Ponzi scheme, in which early investors are paid with money from later ones.
—Nick Lichtenberg, Fortune, 13 Mar. 2026
He was charged in 2013 with tax fraud for filing an incorrect return tied to a Ponzi scheme operated by another man.
—Nick Penzenstadler, USA Today, 10 Mar. 2026
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
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Silas Morgan, The Orlando Sentinel, 14 Mar. 2026
Critics of Social Security have long compared the pay-as-you-go structure to a Ponzi scheme, in which early investors are paid with money from later ones.
—Nick Lichtenberg, Fortune, 13 Mar. 2026
He was charged in 2013 with tax fraud for filing an incorrect return tied to a Ponzi scheme operated by another man.
—Nick Penzenstadler, USA Today, 10 Mar. 2026
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
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 17 Mar. 2026.
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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