Ponzi scheme

Definition of "Ponzi scheme"
  1. A fraudulent investment strategy promising high returns, where funds from new investors are instead used to pay earlier investors
How to use "Ponzi scheme" in a sentence
  1. The fraudster was arrested for running a Ponzi scheme that deceived hundreds of investors.
  2. Victims of the Ponzi scheme lost their life savings when the operation was exposed.
  3. Regulators warn that investments promising too-good-to-be-true returns may be Ponzi schemes.

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