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.
Jason Cloth — who has producer credits on Babylon, Joker, Longlegs, and House of Gucci — was arrested in Chicago for allegedly running a $100 million Ponzi scheme. — Bethy Squires, Vulture, 29 July 2026 Jason Cloth, a film producer with dozens of credits including Joker, Longlegs and Babylon, is facing numerous federal fraud charges and decades in prison in connection with a Ponzi scheme that bilked investors of more than $100 million. — Erik Pedersen, Deadline, 29 July 2026 Cloth is also accused of using investor funds to repay past investors — a Ponzi scheme. — Adam Harrington, CBS News, 29 July 2026 Longtime Philadelphia Daily News sportswriter Dick Jerardi once likened the process to a basketball Ponzi scheme. — Dana O’Neil, CNN Money, 24 July 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

See All Rhymes for Ponzi scheme

Browse Nearby Words

pony up
Ponzi scheme
ponzu
See all Nearby Words

Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 5 Aug. 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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