Ponzi Scheme
/ˈpɒnzi skiːm/
Definitions
- (n.) A fraudulent investment operation where returns to earlier investors are paid from the capital of newer investors rather than from profit.
The court convicted the operator of running a Ponzi scheme that defrauded thousands of investors.
Forms
- ponzi scheme
- ponzi schemes
Related terms
See also
Commentary
Ponzi schemes are characterized by their unsustainable payment model, often collapsing when new investments cease; legal definitions focus on fraud and securities law implications.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.