Ponzi scheme

 
Pronunciation: /ˈpɒnzi/

noun

  • a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors: a classic Ponzi scheme built on treachery and lies

Origin:

named after Charles Ponzi (died 1949), who carried out such a fraud (1919–20)