: 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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By 2021 the company was running as a Ponzi scheme, the complaint said, even as Frost withdrew increasing amounts of money.
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Emma Burleigh, Fortune, 11 July 2025
The Securities and Exchange Commission and Georgia officials are investigating a Georgia businessman and GOP supporter accused of perpetrating a Ponzi scheme defrauding hundreds of investors out of more than $140 million, and using some of the money for political donations.
—ABC News, 11 July 2025
The Securities and Exchange Commission accused a Georgia Republican of running an elaborate Ponzi scheme in a civil lawsuit filed Thursday that scammed 300 investors out of $140 million.
—David Zimmermann, The Washington Examiner, 11 July 2025
Years before, the defendant had been convicted of financial crimes for running what a judge called a Ponzi scheme.
—Evan Mealins, The Tennessean, 2 July 2025
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Emma Burleigh, Fortune, 11 July 2025
The Securities and Exchange Commission and Georgia officials are investigating a Georgia businessman and GOP supporter accused of perpetrating a Ponzi scheme defrauding hundreds of investors out of more than $140 million, and using some of the money for political donations.
—ABC News, 11 July 2025
The Securities and Exchange Commission accused a Georgia Republican of running an elaborate Ponzi scheme in a civil lawsuit filed Thursday that scammed 300 investors out of $140 million.
—David Zimmermann, The Washington Examiner, 11 July 2025
Years before, the defendant had been convicted of financial crimes for running what a judge called a Ponzi scheme.
—Evan Mealins, The Tennessean, 2 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 15 Jul. 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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