Koriun Inversiones: financial scam under official cover

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 actions by the authorities, the confiscation of assets, and how investors have reacted have highlighted a confidence crisis in the country’s financial sector. The inquiry is ongoing, raising concerns about the accountability of government representatives and the efficiency of monitoring systems.

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) confirmed that Koriun Inversiones was not authorized to operate as a financial institution. During inspections carried out at various branches and administrators’ homes, large sums of cash were found, stored informally in boxes and bags. In addition, significant financial movements were identified, including the withdrawal of $400,000 by US citizens associated with the start of the fraudulent scheme 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 leaders, attorneys, and government employees. Castro criticized the supervisory bodies for their delayed response and called for a comprehensive investigation to identify those accountable for enabling or permitting the deceit. He also referred to the participation of mayors who endorsed the company and the inaction of prosecutors regarding initial alerts.

The closure of Koriun Inversiones sparked protests by those affected, who demanded the return of their funds and expressed fear of losing their capital. The CNBS ordered the seizure of the funds and their return to investors to the extent possible, although the process is expected to be complex and lengthy. The case has highlighted the vulnerability of citizens to unregulated financial schemes and the need to strengthen oversight and protection mechanisms in the Honduran financial sector.