Edgardo Castro demands investigation of officials in Koriun case

The case involving Koriun Investments has ignited a heated discussion in Honduras following the uncovering of a Ponzi scheme that impacted over 35,000 individuals. The public accusation made by Representative Edgardo “Chele” Castro has highlighted the issue of potential political and legal shields that enabled the firm to function unlawfully.

The intervention of the authorities, the seizure of funds, and the reaction of investors have revealed a crisis of confidence in the national financial system. The investigation continues, while questions arise about the responsibility of public officials and the effectiveness of oversight mechanisms.

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 authorization to function as a financial entity. Upon conducting examinations at different branches and the residences of administrators, substantial amounts of money were discovered, loosely kept in boxes and bags. Moreover, noteworthy financial activities were detected, such as the removal of $400,000 by American citizens linked to the inception of the deceptive plan in 2017.

Allegations of political protection and crisis of confidence

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 shutdown of Koriun Inversiones triggered demonstrations by those impacted, who called for the recovery of their money and voiced concerns about the potential loss of their investments. The CNBS mandated the confiscation of funds and their reimbursement to investors as much as feasible, even though the procedure is anticipated to be intricate and time-consuming. The situation has underscored the susceptibility of individuals to unregulated financial plans and the necessity to enhance monitoring and protection systems within the Honduran financial industry.