1. An illegal or fraudulent investment scheme where returns for existing investors are generated primarily by recruiting new participants rather than from legitimate business activities or profit from real investment.
The company was shut down after authorities discovered it was operating a pyramid scheme.
A empresa foi fechada depois que as autoridades descobriram que ela operava uma pirâmide financeira.
2. A fraudulent business model that promises high returns and relies on continuous recruitment of new members to sustain payments to earlier investors.
Many victims lost their life savings in the pyramid scheme.
Muitas vítimas perderam suas economias de vida toda na pirâmide financeira.