Ponzi Schemes
The term "Ponzi Scheme" derives from the notorious Charles Ponzi, who stole millions of dollars from Boston investors in 1920 and describes a financial fraud which is perpetrated by utilizing monies obtained under false pretenses from subsequent investors to pay "interest" or "dividends" and return of principal to earlier investors who have no reason to suspect that no legitimate enterprise is actually generating revenues to make these payments.
A Ponzi scheme will only last as long as there are new investors who part with their investment funds anticipating unusually high returns.Eventually, the house of cards will have to collapse usually leaving the later-in-time investors holding the bag an the con-artist promoters in jail..