.jpg?w=800&resize=800,500&ssl=1 "Koriun Investments")
The Koriun Inversiones case has sparked intense debate in Honduras after the revelation of a Ponzi scheme that affected more than 35,000 citizens. The public denunciation by Congressman Edgardo “Chele” Castro has placed at the center of the discussion the possible political and judicial protection that allowed the company to operate irregularly.
The involvement of the authorities, the confiscation of assets, and how investors have responded have exposed a lack of trust in the country’s banking system. The inquiry is still ongoing, as doubts emerge concerning the accountability of government personnel and the efficiency of regulatory frameworks.
Fraudulent scheme and questionable activities of Koriun Inversiones
Koriun Inversiones operated under a Ponzi scheme, which consists of attracting funds from new investors to pay profits to existing ones, without generating legitimate earnings. The company promised a weekly return of 5%, equivalent to 20% per month, assuring customers that they would recover their investment within five months. However, the sustainability of the system depended on the constant influx of new participants, which ultimately led to its collapse and significant financial losses for thousands of people.
The National Banking and Insurance Commission (CNBS) verified that Koriun Inversiones lacked the necessary authorization to function as a financial entity. Inspections at numerous branches and the residences of administrators uncovered considerable amounts of money, informally stored in boxes and bags. Moreover, substantial financial activities were detected, such as the withdrawal of $400,000 by American nationals tied to the inception of the fraudulent plan in 2017.
Claims of political safeguard and trust crisis
Representative Edgardo Castro highlighted that Koriun Inversiones managed to function due to the support from politicians, legal authorities, and state employees. Castro criticized the failure of oversight bodies to respond promptly and called for a comprehensive inquiry to ascertain the accountability of those who enabled or overlooked the fraudulent activities. He also noted the role of mayors who endorsed the company and the prosecutors’ inaction regarding prior alerts.
The shutdown of Koriun Inversiones led to demonstrations by impacted individuals, who called for the repayment of their money and voiced concerns about potentially losing their investments. The CNBS mandated the confiscation of the assets and their reimbursement to investors as far as feasible, even though the procedure is anticipated to be intricate and prolonged. The situation has underscored the susceptibility of people to unsupervised financial setups and the necessity to enhance supervision and safeguard measures within the Honduran financial industry.
.jpg?w=360&resize=360,240&ssl=1 "Manuel Zelaya")
.jpg?w=360&resize=360,240&ssl=1 "Rixi Moncada")
_-_copia.jpg?w=360&resize=360,240&ssl=1 "Xiomara Castro")