A Ponzi scheme The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter. The scheme is named after Charles Ponzi, who became notorious for using the technique after emigrating from Italy to the United States in 1903. Ponzi was not the first to invent such a scheme, but his operation took in so much money that it was the first to become known throughout the United States
Home / Questions / What is the name given to the fraudulent operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors rather than from revenues generated by any business?