A Ponzi scheme, such as Bernie Madoff ran, is:

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A Ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital of newer investors, instead of from actual profits earned. It is named after Charles Ponzi, who famously ran such a scheme in the early 1900s. While Ponzi schemes can seem lucrative initially, they inevitably collapse when there are not enough new investors to sustain payouts to earlier investors. As a result, they are hard to hide forever and typically result in significant financial losses for investors.

A Ponzi Scheme, Such as Bernie Madoff Ran, Is