What is the name for a form of fraud that uses money collected from new investors,rather than profits from the supposed underlying business venture,to pay high rates of return promised to earlier investors?

Question

Quizplus · Accepted Answer

A Ponzi scheme is a fraudulent investment operation in which returns are paid to earlier investors using the capital contributed by newer investors, rather than from profits earned by the underlying business. This scheme is named after Charles Ponzi who became famous for using this technique in the 1920s.

What Is the Name for a Form of Fraud That