Ponzi scheme

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Related to Ponzi schemes: insider trading, Pyramid schemes, Bernie Madoff

Pon·zi scheme

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

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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The team also handles corporate theft, and recovery after data breach, with a focus on financial losses, and has particular experience in all aspects of liquidating Ponzi schemes.
Ponzi schemes usually collapse on themselves when new investments stop.
THE government has constituted a highpowered committee to recommend steps to strengthen the existing legislative and administrative framework for curbing the menace of Ponzi schemes.
The bench referred to its May 9 last year's order directing the agency to probe the duping of thousands of people of over Rs 10,000 crore through several ponzi schemes in West Bengal, Odisha and Assam.
Summary: In a bid to curb the menace of Ponzi schemes and protect investors, the Securities and Exchange Board of India (Sebi), which regulates the Indian capital market, has been granted more powers.
The State Bank of India (NSE: SBI) has said that the Indian central bank or SEBI needs to create awareness against Ponzi schemes.
In recent years, Ponzi schemes have captured national headlines and left a broad array of victims--often individual investors -- devastated by the scheme's aftermath.
Unfortunately these sorts of recoveries are kind of the nature of the beast when it comes to Ponzi schemes," he said.
Since the Howell scheme collapsed and he died, which were almost simultaneous events, we have all learned that Ponzi schemes can be much bigger and longer-lasting than previously assumed.
Ponzi schemes have been around for a long time, but they have come to the forefront in recent years.
Ponzi schemes leave their victims in financial ruin and their perpetrators, if caught, with lengthy prison terms like the 110-year sentence given Thursday to swindler and former Texas billionaire Allen Stanford.
Commenting on the possible need to adopt a special law against Ponzi schemes in Latvia, Brazovskis explained that much can be achieved within the framework of the existing laws and regulations, or maybe some amendments could be drawn up.