Ponzi scheme

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Pon·zi scheme

 (pŏn′zē)
n.
A fraud disguised as an investment opportunity, in which initial investors and the perpetrators of the fraud are paid out of funds raised from later investors, and the later investors lose all funds invested.

[After Charles Ponzi (1882?-1949), Italian-born speculator who organized such a scheme (1919-1920).]

Ponzi scheme

(ˈpɒnzɪ)
n
a fraudulent investment operation that pays quick returns to initial contributors using money from subsequent contributors rather than profit
[After Charles Ponzi, who famously perpetrated such a scheme in the United States of America in the early 20th century]
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References in periodicals archive ?
The division bench had rejected the bail petition, moved by Former union minister and senior lawyer Kapil Sibal, on the grounds that it might hamper the process of ongoing Supreme Court- monitored CBI probe in connection with the ponzi scam.
So far, the agency has found that a maze of 338 bank accounts and 224 companies were used by the perpetrators of the ponzi scam, which allegedly duped investors in various states including West Bengal, Odisha and Assam.
The people who beat up the officer had probably confused with being an CBI investigator or it may also be that this was a specific attack on him as ED is also probing the Saradha ponzi scam alongisde CBI.
Ghosh averted from accusing the leaders of being involved in the Saradha Group ponzi scam, and instead suggested that police should seek their help to delve into the scam.
Siliguri (West Bengal), July 5 ( ANI ): West Bengal Police on Friday shifted Saradha Group chief Sudipta Sen and his deputy Debjani Mukherjee, the accused in the ponzi scam, to another jail in Siliguri district after the state government notified the formation of a special committee to carry out instant investigation.
Financial disasters such as Enron, WorldCom, the subprime mortgage derivatives crisis, and the Madoff Ponzi scam also belong to the same class.
Sakowitz, a Miami attorney and real-estate developer, blew the whistle on Fort Lauderdale political insider Scott Rothstein's elaborate Ponzi scam.
A Ponzi scam is one of the most prevalent investment frauds in today's society.
Additionally, the anniversary has prompted two books dedicated to one of the other main American stories of 2007/2008 analysing, often very unkindly, the motives for the Madoff Ponzi scam.
Look at how Al Gore (backed by big business) and the EU (any opportunity to tax and tax and control) have jumped on the 'carbon trading' pyramid Ponzi scam and ask yourself why -- and how -- you allowed yourselves to be duped so easily.
It remains to be seen, however, whether the Upper East Side co-op that Madoff lived in before he went to jail for the largest Ponzi scam in history will also command such heavy buyer interest -- and such a significant price premium.
The people who need straight answers regarding the foundations and endowments that lost billions of dollars in the Ponzi scam allegedly run by Bernie Madoff are the clients who desperately needed the services provided by the charities that now have their funding cut because of the scam.