1. A fraudulent investment operation where returns for existing investors are generated by revenue from new investors, rather than from legitimate business activities or profit
The company was shut down after authorities discovered it was operating a pyramid scheme.
A empresa foi fechada depois que as autoridades descobriram que estava operando um esquema de pirâmide.
2. An unsustainable business model that collapses when recruitment of new participants slows or stops
Most pyramid schemes eventually collapse, leaving the majority of participants with significant losses.
A maioria dos esquemas de pirâmide eventualmente desaba, deixando a maioria dos participantes com perdas significativas.