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

In the posts, de Hek called out Goliath as a Ponzi scheme defrauding its investors. —Stephen Hudak, The Orlando Sentinel, 1 Mar. 2026

After months of investigating allegations of a $140 million Ponzi scheme, Georgia Secretary of State Brad Raffensperger's office has made numerous criminal referrals and issued $1 million in fines, ensnaring a number of state GOP figures. —Olivia Rubin, ABC News, 26 Feb. 2026

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

Disgraced ex-San Antonio financial adviser Brooklynn Chandler Willy, accused of getting clients to invest in a massive Ponzi scheme, is negotiating a plea agreement in her two criminal cases to avoid a federal trial later this year. —Patrick Danner, San Antonio Express-News, 30 Jan. 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