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

Celsius turns out to be a Ponzi scheme. —Owen Gleiberman, Variety, 20 Apr. 2026

The last of eight defendants sentenced for committing the biggest Ponzi scheme in California history has received a 5½ year state prison term, authorities said. —Rick Hurd, Mercury News, 15 Apr. 2026

Moore has shared Anderson’s concerns, criticized Nesta for his professional ties to Christopher Delgado, an Apopka resident who federal prosecutors say operated a $328 million Ponzi scheme, and accused him of causing dysfunction at commission meetings. —Silas Morgan, The Orlando Sentinel, 14 Apr. 2026

His $300 million Ponzi scheme through his Trans Continental companies was uncovered in 2006. —Stephanie Nolasco, FOXNews.com, 14 Apr. 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