Ponzimonium

AAA

DEFINITION of 'Ponzimonium'

After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium refers to the tremendous growth rate in the number of people under investigation by the Securities Exchange Commission for suspected similar fraudulent behaviors.




INVESTOPEDIA EXPLAINS 'Ponzimonium'

Possibly due to the heavy exposure of the event concerning Mr. Madoff's business practices or the downturn in the economy, the use of Ponzi schemes appears to be more prevalent than previously believed. Criminals are now even turning to fraudulent internet investment operations to cheat unsuspecting victims.

VIDEO

RELATED TERMS
  1. Ponzi Mania

    The seemingly sudden recognition of Ponzi schemes following the ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Bernard Madoff

    The former chairman of the Nasdaq and founder of the market-making ...
  4. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with ...
  5. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New ...
  6. Financial Action Task Force (FATF)

    An intergovernmental organization that designs and promotes policies ...
Related Articles
  1. Bonds & Fixed Income

    Tales From Wall Street's Crypt

    Wall Street continues to attract fresh hordes of ghoulish people committing the same old crimes.
  2. Active Trading

    What Is A Pyramid Scheme?

    The FTC announced it had opened an official investigation of Herbalife, which has been accused of running a pyramid scheme. But what exactly does that mean?
  3. Personal Finance

    Enron: The Fall Of A Wall Street Darling

    Enron is a classic example of greed gone wrong and how investors were led astray.
  4. Active Trading Fundamentals

    Using Logic To Examine Risk

    Know your odds before you put your money on the table.
  5. Personal Finance

    4 Dishonest Broker Tactics And How To Avoid Them

    Protecting yourself from unscrupulous practices means knowing how to spot them.
  6. Economics

    America's Most Notorious Corporate Criminals

    Learn about the crimes and punishments of some of the most infamous convicted white-collar crooks.
  7. Investing News

    Educating Your Clients About Cybersecurity

    Financial advisors must lead the charge against cybersecurity risks, for their clients and for their own practices.
  8. Investing News

    How The Patriot Act Works & Why Is It Important

    The USA Patriot Act gave the government more muscle to fight financial crime after the Sept. 11 terrorist attacks. Here's an overview.
  9. Insurance

    What You Need To Know About Insurance Fraud

    Insurance fraud is as old as commerce. Discover the types of life insurance fraud and how they affect you.
  10. Markets

    What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center