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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.
Ponzi scheme and irregular operations 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 safeguarding and trust crisis
Representative Edgardo Castro highlighted that Koriun Inversiones managed to function due to the backing of political individuals, legal prosecutors, and government employees. Castro criticized the supervisory bodies for not taking swift measures and insisted on a comprehensive inquiry to identify those accountable for enabling or permitting the deception. He further noted the participation of local leaders who endorsed the firm and the inaction of prosecutors regarding initial alerts.
The shutting down of Koriun Inversiones led to demonstrations by the impacted individuals, who called for the reimbursement of their money and voiced concerns about the potential loss of their investments. The CNBS instructed the confiscation and redistribution of the funds to investors as much as feasible, even though the procedure is anticipated to be intricate and protracted. This incident has underscored the exposure of people to unregulated financial plans and the necessity to enhance supervisory and protective measures in the financial sector of Honduras.