It has been seen recurrently in Brazilian television news articles that refer to the so-called “oranges”, that, in most cases, are linked to the names of people who make up the Brazilian political scene and who practice the so-called “white collar crimes”.
In general, the so-called famous “oranges” are individuals or legal entities (companies) that act as a means for the practice, mainly, of the crimes of corruption and money laundering , while lending their names and other personal data to other people (often political) in order to simulate ownership of goods and other assets.
In other words, orange is, apparently , the owner of some good, when, in fact, the owner is a person who intends to hide his real property because it comes from an illicit source , uncertain, improper.
What are oranges?
Orange is also jargon widely used in the police sector and that fell into the vocabulary of the Brazilian population due to the great recurrence with which this type of practice has been seen. It is applied to individuals and legal entities that transfer their personal data to other people for illicit purposes, such as concealment of assets and tax evasion.
It is important to note that orange can:contribute intentionally for the achievement of such crimes, when you are aware of the purpose for which you lend your data, as well as being a victim of fraud .
Learn more: Read more about this other very recurrent social problem in Brazil today
Orange natural person x Orange legal entity
It is now up to us to point out some important aspects that guide this subject, distinguishing what are the types of oranges available and the reasons that lead a person to be, intentionally or not, someone's orange.
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Orange physical person
Physical person refers to the human being himself, to the individual holder from rights and duties . When the individual acts as an orange, his name and personal data, such as RG and CPF, are used by a third party to represent a false property of the orange over a certain asset, that is, the orange is considered, in the eyes of the law and for any purpose, as the true owner of a certain heritage, when, in fact, the authentic and legitimate owner of that same heritage is someone who wants to hide it due to its illicit origin.
It is extremely important to make it clear that orange may or may not be aware of its condition as such. It is possible for a person to have his name used to hide goods without intending to do so, becoming a victim of fraud. This is the case, for example, of someone who has lost or misplaced documents , and whoever takes possession of them uses them improperly, registering miscellaneous assets in their name. On the other hand, whoever accepts to become someone's orange is rewarded , somehow, to do so.
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Legal person (company) orange
Money laundering is a form of use of oranges carried out by legal entities.
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Shell companies for concealment of illicit enrichment arising from organized crime :in this case, instead of resorting to a natural person and transferring the assets resulting from illicit enrichment, the person who obtains goods illegally opens a company that can justify them, serving as a front for the well-known laundering of money . Thus, such companies are oranges (ghost companies ) and serve solely to support the movement of money, often not even performing the activities they were created for.
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Shell companies to false provision of services :such companies are not created to justify illicit enrichment, but to promote it . In this case, very common in the political scope , orange companies or shell companies are used for a false service provision to other public or private companies . By claiming the fulfillment of the service, companies receive for something they did not do, generating enrichment. It should be noted that it is common for not only the company, but also the entrepreneur that appears in its registry to be oranges, in order to remove suspicions about the real owner who holds the profits.
So, by being someone's orange, the person is contributing so that the true owner of some heritage achieves his goals. And for what reasons would an individual need to register their assets in someone else's name?
Also read: Learn more about this political-economic model
Why are oranges used?
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Hiding assets for tax evasion
It is well known that in Brazil, as in countless other countries, citizens who meet the requirements of the Federal Revenue must contribute to the income tax annually. It turns out that, in an attempt to reduce the amount of tax to be paid, given that the contribution rates with the IR are variable, there are people who fraudulently omit (and lie) the income they earn throughout the year, proceeding with tax evasion for their benefit.
However, when declaring an income lower than what they actually receive, such people may not be able to obtain a plausible argument that justifies the possession of goods with a very high value, which would only be justified when considering your actual income. In this case, that same person, in order not to be caught in mesh fine, registers goods in the name of another person, in this case, in the name of the orange.
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Illicit enrichment concealment
When someone obtains money or goods illegitimately, illegally, whether through corruption or any other crime (hence, it is an illicit enrichment, which should not occur). The oranges enter the scene in order to hide the fortune that has been “won” unduly by its true owner.
In order not to concentrate the product of this enrichment solely in its hands, which would raise suspicion in the eyes of the law and society, its holder distributes it to another person or persons so that it is not easily identified.
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Providing a name for acquiring credit
Perhaps the most common practice among the existing ones. Providing a name for acquiring credit is something practically commonplace in our society. It is a false purchase, in which whoever acquires a good does it for someone else, who, as he is named in the Credit Protection Service (SPC), could not do it in installments.
Thus, the “orange” assumes the debt for that good as if he were acquiring it for himself. However, whoever owns it and is “responsible” for its payment is the one who is restricted by the SPC.
Why do oranges harm the population?
In view of the above, it is clear that the oranges serve as a means for the practice of much greater crimes , mostly linked to money. Unfortunately, the biggest victim of such crimes is the population, especially the portion that most needs the effective provision of public services to live with dignity.
Being someone's orange doesn't just mean helping them to break the law, but also harming thousands or millions of other people who will suffer from the money taken from them through corruption , tax evasion, lack of ethics in the private service and, above all, in the public service.
How are oranges punished?
The law number 12. 846 , of August 1, 2013, provides for the liability of legal entities for the practice of acts contrary to the national or foreign public administration , providing for punishment for crimes of concealment of assets and liability of companies that act as oranges for illicit purposes, or that use third parties for this purpose. Punishments for committing such acts range from fines and money back undue, even arrest of those involved .
On the other hand, people who act as oranges, depending on the case, can be judged as co-authors or participants of the crime committed, when they are not victims of fraud.