ponzi scheme
Robbing Peter, paying
A ponzi scheme is a fraudulent investment operation where returns to earlier investors are paid using capital from newer investors rather than legitimate profits.
The scheme requires constant recruitment to sustain payouts and inevitably collapses when new money dries up.
Named after Charles Ponzi, who ran such a scheme in the 1920s.
The fund turned out to be a massive ponzi scheme that defrauded thousands.
- fraudIntentional criminal trickery
- financial fraudIllegal monetary deception
- scamDishonest money-making scheme
- pyramidPointed polyhedral solid
- white collar crimeNonviolent financial wrongdoing
Bernie Madoff · investment · too good to be true · swindle · con · collapse · returns · robbing Peter to pay Paul · victims · hustle · promise · greed · investors · Wall Street · SEC · prison · money · house of cards
- financial fraudsecurities fraud, bank fraud, accounting fraud, defalcation, embezzler
- crimerobbery, accomplice, alibi, burglary, conspiracy
- wrongdoingmisconduct, crime, sabotage, crimes, misbehavior
- fraudscam, fraud, swindle, con, deceive
- corporate crimescorporate fraud, securities fraud, insider trading, price fixing, embezzlement
- criminal schemesconspiracy, collusion, racketeering, assassination plot, kidnapping plot
ponzi schemeindex fund
Investment matching market benchmark
government bond · mutual fund · ethical investing · blue-chip stock · real estate investment
ponzi schemeethical investing
Aligning portfolios with values
philanthropic foundation · pension fund · 401(k) · credit union