Meaning
To be a front man, to lend one's name for illegal or fraudulent activities
Example
Descobriram que ele era laranja de um esquema de corrupção.
They found out he was a front man for a corruption scheme.
Origin
The origin of laranja ("orange") as slang for a fraud proxy is genuinely disputed — linguists say pinning it down with certainty is close to impossible. The leading theories: a 1970s pyramid scheme among political prisoners, where a "limão" ("lemon") recruited unwitting "laranjas" who rarely saw their money again; police slang for suspects who gave up accomplices once pressured; and a rumored 1980s scandal involving orange growers used as fronts in a bank fraud.
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More idioms
Acertar na moscaTo guess correctly / To hit the nail on the headAmigo da onçaA fake/false friendAndar na linhaTo toe the line / To behave properlyArmar um barracoTo cause a public sceneRodar a baianaTo cause a public scene / To go ballisticArrumar sarna pra se coçarTo ask for troubleArrastar as asasTo hit on someone / To flirtAbrir o jogoTo come clean / To open upArregaçar as mangasTo roll up one's sleeves / To get to workAgarrar com unhas e dentesTo hold on for dear life / To seize an opportunity