what is an example of a ponzi scheme 
adam promises a 10 return on a 1 000 loan to his friend barry barry gives adam 1 000 with the expectation that he ll be paid 1 100 in one year next adam promises 10 returns to his friend christine christine gives adam 2 000 with 3 000 now on hand adam pays barry his 1 100 he spends the rest of the money confident that he can persuade someone else to give him money before christine s money is due to be repaid the best ponzi schemes however rely on long term investors if adam can persuade barry and christine to let him continue to invest their money he ll need to pay them only the periodic interest he has promised he can spend the rest confident that new investors will supply enough to keep the scam running 