Definition of Ponzi scheme
: 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
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Origin and Etymology of ponzi scheme
Charles Ponzi †1949 American (Italian-born) swindler
First Known Use: 1920
Law Dictionary
Ponzi scheme
play
noun
Pon·zi scheme
\ˈpän-zē-ˌskēm\
Legal Definition of Ponzi scheme
: an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability
Origin and Etymology of ponzi scheme
Charles A. Ponzi (ca. 1882–1949), Italian-born American swindler
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