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Home > QFINANCE Dictionary > Definition of Ponzi scheme

Definition of

Ponzi scheme


banking fraud a fraudulent pyramid selling activity that offers investors high returns which are paid directly from the money deposited by new investors. When new deposits cannot match payments, the organization fails. The fraud is named after Charles Ponzi, who first set up such a scheme in the United States in 1920.

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Definitions of ’Ponzi scheme’ and meaning of ’Ponzi scheme’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Ponzi scheme’ and other financial terms with our online QFINANCE Financial Dictionary.

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