A Ponzi scheme, such as the one 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 contributed by newer investors. The scheme collapses eventually when not enough new investors are brought in to pay the returns to earlier investors. It is difficult to hide the scheme forever because it requires a constant influx of new investors to keep it going, and eventually the fraud will be exposed.

A Ponzi Scheme, Such as the One Bernie Madoff Ran