Ponzi schemes
Robbing Peter, Paul
A Ponzi scheme is a fraudulent investment operation where returns to earlier investors are paid using capital from newer investors rather than from legitimate profits.
Named after Charles Ponzi, who ran a notorious 1920s scam involving postal reply coupons, such schemes inevitably collapse when new investment slows and operators can no longer pay promised returns.
The fund turned out to be a massive Ponzi scheme that defrauded thousands of retirees.
- swindleDeception for financial gain
- embezzlementFraudulent taking of entrusted assets
- white collar crimeNonviolent financial wrongdoing
- fraudulentInvolving intentional dishonesty
- insider tradingIllegal securities transactions using nonpublic information
Bernie Madoff · deception · confidence trick · too good to be true · suckers · scam · investment fraud · money laundering · robbing Peter to pay Paul · recruits · false pretenses · fleecing · house of cards · securities fraud · cons · shell companies · unsustainable · victims
- crimesarson, burglary, robbery, kidnapping, vandalism
- wrongdoingmisconduct, crime, sabotage, crimes, misbehavior
- money jokesbroke jokes, poor jokes, stock jokes, loan shark, bubble burst
- shady dealingsscams, swindles, cons, grifts, fraud
- hoaxesalien autopsy, moon landing hoax, War of the Worlds, fake photos, forgeries
- fraudscam, fraud, swindle, con, deceive
Ponzi schemesgovernment bonds
State-issued debt securities
ethical investing · blue-chip stocks · index funds · fair dealing · mutual funds
Ponzi schemesequity stakes
Ownership interests in companies
venture capital · business loans · infrastructure investment · profit-sharing · value investing