Definitions for "Ponzi scheme"
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 particular kind of criminal offense that may warrant explicit treatment in the definition of loss
Keywords:  list, chain, recipients, people, money
a form of chain letter that requests recipients to send money to people on a list
a transfer of money between people on a listing similar to ours and other websites