Ponzi scheme

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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.
References in periodicals archive ?
Goswami's proximity to Sinh prompted him even try to stall his arrest by the Central Bureau of Investigation ( CBI) last week in Kolkata in the multi- crore Ponzi scam case.
Both the Bharatiya Janata Party (BJP) and the Trinamool leadership are waging an ugly war in the state over the Ponzi scam.
Accused of `47,000- crore Ponzi scam Pearls group is running operations under new names
THE CBI has formed four special teams to expedite the probe into the ` 45,000- crore Ponzi scam related to Pearls Agrotech Corporation Ltd ( PACL) and Pearls Golden Forest Ltd ( PGF).
The Ponzi scam has plunged Odisha into a state of great political turmoil, with even the Assembly's Winter Session terminated midway owing to repeated disruption by the Opposition over the alleged involvement of BJD leaders.
AFTER the arrests of Trinamool Congress biggies like state minister Madan Mitra, Rajya Sabha MPs Srinjoy Bose and Kunal Ghosh and former cop- turned- politician Rajat Majumdar, the spotlight is now on the alleged role of a section of the ruling party leadership in the multicrore Saradha Ponzi scam.
TRINAMOOL Congress (TMC) chief and West Bengal CM Mamata Banerjee is facing trouble, after the arrest of Madan Mitra in connection with the Saradha Ponzi scam.
Referring to Shah's claim the multi- crore Saradha Ponzi scam, Abhishek said Mamata would definitely support an unbiased investigation the case.
EVEN as thousands of investors duped by chit fund companies demonstrated outside the CBI's regional headquarters on Thursday, the agency called two officials of registrar of companies for interrogation in connection with the Ponzi scam.
Congress leaders by the Central investigation agency in connection with the Ponzi scam.
Three senior leaders of the party are already in jail in connection with the Ponzi scam.
WINTER SESSION began on a stormy note for the Odisha Assembly on Thursday as Opposition parties raised a storm alleging the involvement of Biju Janata Dal ( BJD) leaders in a multi- crore Ponzi scam under investigation in the state.