Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- How to pronounce Ponzi scheme (audio)
Synonyms of Ponzi schemenext
: 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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
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 Delgado, 34, was the president and CEO of Goliath Ventures, the company at the center of the alleged Ponzi scheme. — Annie Martin, The Orlando Sentinel, 22 May 2026 Related Stories Horwitz is serving a 20-year sentence over what federal prosecutors described as a $650 million Ponzi scheme. — Gene Maddaus, Variety, 4 June 2026 In the early 2000s, Pearlman was accused of running a massive Ponzi scheme, and he was charged with conspiracy, money laundering and making false claims in bankruptcy in 2007. — Ashley Hume , Larry Fink, FOXNews.com, 16 Apr. 2026 See All Example Sentences for Ponzi scheme

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Time Traveler
The first known use of Ponzi scheme was in 1920

Rhymes for Ponzi scheme

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Browse Nearby Words

pony up
Ponzi scheme
ponzu
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Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 7 Jul. 2026.

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Legal Definition

Ponzi scheme

noun
Pon·​zi scheme ˈpän-zē-ˌskēm How to pronounce Ponzi scheme (audio)
: 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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