FINANCIAL PYRAMID AND ITS LEGAL CONSEQUENCES

Abstract

The advancement of technologies and the dissemination of various financial ventures means that people are routinely presented with proposals for true enrichment. By joining a certain enterprise, started with an initial investment, the individual is led to believe that in a short time he will receive a large financial return. In practice, over time, this profit ends up not being realized, while the enterprise continues through the entry of new individuals. This type of fraud is called financial pyramid, the legal consequences of which are the subject of this research. As it consists of a business model in which participants become members of a scheme that promises quick and high profits, but which ends up resulting in financial losses, it is considered an illegal and unsustainable system, since its main objective is to enrich those who are at the top of the pyramid. In Brazilian legislation, civil liability for material and moral damages arises from this practice; and in the criminal sphere, it can lead to conviction for embezzlement or a crime against the popular economy. Through bibliographic and exploratory research, the study offers an in-depth understanding of this crime, in order to prevent individuals from getting involved in this type of illicit activity, with the exposure of famous cases that occurred in Brazil.