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Ponzi scheme
(redirected from Ponzi scam)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 sec.
Ponzi scheme
A fraudulent investment scheme. Investors are promised very high returns by the promoter. The original investors often realize these high returns because their payouts are funded by cash from new investors. New investors' cash is used to pay out the original investors. The investors' funds are usually not applied to the stated purpose. However, the reported high returns attract additional inflows of capital used to pay out subsequent investors. The scheme fails when the payouts to existing investors and/or redemption requests exceed new investor inflows.

Ponzi scheme
See pyramid.


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It was filed by California lawyer Joseph Cotchett on behalf of some victims of Madoff's multibillion-dollar Ponzi scam, the biggest fraud in US financial history.
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.
Byline: ANI Houston, Sep 26(ANI): Texan billionaire Sir Allen Stanford, who is in jail awaiting trial on charges related to an alleged seven billion dollar Ponzi scam, was taken to hospital after being injured in a prison fight with another inmate.
 
 
 
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