🌐 Entity
Ponzi scheme
Type of financial fraud
📊 Rating
1 news mentions · 👍 0 likes · 👎 0 dislikes
📖 Key Information
A Ponzi scheme (, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian con artist Charles Ponzi, this type of scheme misleads investors by either falsely suggesting that profits are derived from legitimate business activities (whereas the business activities are non-existent), or by exaggerating the extent and profitability of the legitimate business activities, using new investments to fabricate or supplement these profits. A Ponzi scheme can maintain the illusion of a sustainable business as long as investors continue to contribute new funds, and as long as most of the investors do not demand full repayment or lose faith in the non-existent assets they are purported to own.
📰 Related News (1)
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🇺🇸 Georgia's Brad Raffensperger showcases Ponzi scheme fight as he runs for governorIt was a moment of triumph for Georgia Secretary of State Brad Raffensperger on Wednesday, as he announced his office had persuaded a securities firm ...
🔗 Entity Intersection Graph
People and organizations frequently mentioned alongside Ponzi scheme:
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Brad Raffensperger · 1 shared articles -
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Secretary of state · 1 shared articles
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Governor of Georgia · 1 shared articles