Koriun Ponzi scheme: warning about scams in Honduras

The closure of Koriun Inversiones has triggered a series of reactions in both the social and political spheres in Honduras. The discovery of a Ponzi scheme and allegations of institutional protection have called into question the authorities’ ability to prevent and punish large-scale financial fraud.

The actions involved in acquiring resources, demonstrations by impacted individuals, and the continuous inquiry indicate the intricacy of the situation and emphasize the necessity for efficient solutions to reinstate trust in the nation’s economic framework and entities.

Consequences for investors and securing funds

Numerous individuals who entrusted their assets to Koriun Inversiones are now dealing with the uncertainty of retrieving their funds. After the Public Prosecutor’s Office and the Technical Criminal Investigation Agency (ATIC) intervened, significant amounts of money were discovered in the company’s branches and residences, along with assets frozen in bank accounts. Nonetheless, the restitution of funds to investors has been obstructed due to the absence of legal support and formal agreements, leading to confusion and anxiety among those impacted.

Demonstrations by Koriun’s associates, featuring road barricades and efforts to stop the authorities from retrieving funds, underscored the social ramifications of the deceit. The CNBS along with the Public Prosecutor’s Office have stressed the imperative for the firm to refund the funds gathered unlawfully, despite anticipating a lengthy and complicated procedure. The absence of backing from the Deposit Insurance Fund (FSD) for this category of investment worsens the plight of those impacted.

Political effects and calls for inquiry

Assertions by Congressman Edgardo Castro and other political figures have underscored the potential involvement of government officials, prosecutors, and local authorities in the dealings of Koriun Inversiones. Instances have surfaced where local leaders endorsed the company and legal representatives neglected to respond to early indications of misconduct. These claims have led to demands for a thorough probe to ascertain accountability and penalize those who aided or concealed the deceit.

This situation has sparked a discussion about the importance of enhancing financial supervision systems and guaranteeing clarity in the operations of entities tasked with safeguarding citizens. Establishing a dedicated committee within the National Congress to monitor asset recovery and victim support is among the proposed actions to tackle the aftermath of the fraud and deter similar incidents from occurring again.