Investment swindle in which high profits are promised & early investors are paid off from funds raised from later ones. Named after Italian speculator Charles Ponzi, who organised such a scheme in 1919-1920. Excellent modern-day example is US Social Security system.
A money-making pyramid scheme where investors at the top of a list of names make money by recruiting more investors into the scheme. Those at the top are paid by the fees gathered from recruits up to 5 or 6 levels down. Ultimately, those at the bottom lose their money when they run out of new recruits. It has many variations and is illegal in most countries. See a Statement by the FTC for more.
An investment scam that appears to be actually paying high returns by paying the supposed returns out of the investors' own capital.... more on: Ponzi scheme
A type of investment fraud in which early investors are guaranteed a return and paid off with the proceeds from subsequent investments in an ongoing basis.
a a form of fraudulent investment that promises guaranteed payment of abnormally high returns to investors
a financial arrangement, a sort of company, that people invest in
a form of fraud where early investors are paid off with money from later investors
a multi-level system in which funds from later investors are "recycled" to pay promised returns to early investors
an intentional fraud with nothing behind it to start with
an investment scheme in which returns are paid to earlier investors entirely out of money paid into the scheme by newer investors
an investment scheme named after Charles K
an investment scheme where a promised return is paid out with money paid in by other investers
an investment that depends on the fund raising prowess of the promoter rather than on the success of the underlying investment program
an investment that offers two things to an investor
an outright fraud in which people are induced to invest by promises of quick and easy riches
a phony investment plan in which money provided by later investors is used to pay artificially high returns to the initial investors, with the goal of attracting as many investors as possible)
a premeditated fraud in which a con artist hypes a nonexistent or overvalued investment
a scam where an individual is promised a return on an investment
a scam where investors are promised amazingly high returns on their money based on some 'secret super-investment', but in reality the money to pay older investors is simply taken from the money of new investors
a scam where investors are promised high profits from fictitious sources and early investors are paid off with funds raised from later investors
a system by which investors are lured to invest in a program by promises of very high returns on the investment
a type of illegal pyramid named after Charles Ponzi, who duped thousands of Americans into investing in a postage stamp speculation scheme in
a type of illegal pyramid scheme in which money from new investors is used to pay off earlier investors until the whole scheme collapses
a type of investment fraud in which money taken from newer investors is used to make payments of principal or profit to earlier investors
The term Ponzi scheme is often misused as a synonym for a pyramid scheme, the essential difference is that Ponzi scheme participants are not offered any direct financial incentive for bringing in other participants. However, they are likely to tell their friends about the investment opportunity. The fact that early participants in a Ponzi scheme are paid off from the monies collected by later participants is normally known only to the operator of the Ponzi scheme. The participants are instead offered a story to explain their high investment returns
The term Ponzi is derived from the actions of a man names Charles K Ponzi. It is any program or claimed investment opportunity which relies on new investments to pay off the older ones. Those whom invest first are thus paid their returns from those who invest after them, leaving the last investors the ones who lose out. Many HYIPs who claim to be trading, investing, etc are really only running a ponzi scheme. Some have also compared the US Social Security system to a ponzi scheme.
When the organizers of the scheme use the assets of new investors to make profit payments to the old investors. The scheme typically has no other source of revenue other than from the new investors. Ponzi schemes, often called pyramid schemes, progress geometrically until they reach the point that the operators cannot find enough recruits (victims) to continue the payout. A bust out is a form of a ponzi scheme whereby the suppliers are like the investors, and the bust out (ponzi) scheme continually uses its new debt to pay old debt, building a "house of cards," which must ultimately collapse.
An operation intended to defraud investors in which no new wealth is produced and creditors are paid off by borrowing ever larger amounts from new investors.... read full article
Scheme where a scammer gets money on false promises, then repays the first victims with the money of new victims. Eventually the money runs out, and the scam collapses. See "social security".
Named after Charles Ponzi. In the 1920s, Ponzi was paying investors 50% interest on short-term investments. He was paying these incredible rates with money from new investors. All the while, he was spending some of the incoming funds for personal purposes. A Ponzi scheme can continue as long as there are enough new investors to keep the cash coming. Ponzi schemes are illegal and will eventually collapse. See also pyramid schemes.
A fraudulent scheme in which money from new investors is used to provide a return to previous investors.
A scam in which people at the bottom of the pyramid get shafted, while those at the top are wealthy beyond belief. Both sides are convinced they are getting an incredible deal. (see religion)
A fraudulent scheme. It is a specific form of pyramiding in which money paid by later investors or contributors is used to pay inflated returns to earlier investors â€” until the funds dry up because no more contributors can be found.
Named after Charles Ponzi, a man with a remarkable criminal career in the early 20th century, the term has been used to describe pyramid arrangements whereby an enterprise makes payments to investors from the proceeds of a later investment rather than from profits of the underlying business venture, as the investors expected, and gives investors the impression that a legitimate profit-making business or investment opportunity exists, where in fact it is a mere fiction.
A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business, named after Charles Ponzi.