Translation of Ponzi scheme in Spanish:

Ponzi scheme

estafa Ponzi, n.

Pronunciation /ˈpɑnzi ˌskim//ˈpɒnzi/


  • 1

    estafa Ponzi feminine
    estafa piramidal feminine
    • Instead of bilking people in Ponzi schemes, some CEOs fleece investors by claiming to have achieved enormous profits in the previous year, when the company actually made much less or even suffered a loss.
    • These returns were actually generated from the principal of members who joined later - a classic Ponzi scheme which uses new money to pay off old ‘profits’.
    • When such ventures are attempted in the private sector, they go by the name of pyramid or Ponzi schemes and constitute criminal fraud.
    • Named after Charles Ponzi, who ran such a plot from 1919-1920, the Ponzi scheme is a fraudulent investment plan.
    • It's a bit like a Ponzi scheme, where initial investors are paid off with money from subsequent investors to make it appear that the investment is a success and drum up more investors by word of mouth.