Properties pyramid scheme seized

Colombia’s Financial Superintendent halted the operations and seized
all properties of one of several suspected pyramid investment companies
with the aim of returning money to people that “invested” in the
company’s pyramid scheme.

The action of the financial authority comes after riots broke in the cities Pasto, Popayán and Tumaco when several pyramid schemes of the company collapsed and thousands of people demanded their money back.

Two people were arrested Thursday carrying billions of pesos probably earned with the pyramids.

Pyramid scams are common in the developing world where many
people have little financial sophistication.

The collapse in 1997 of pyramid investment schemes in
Albania produced losses of US$2 billion and led to anarchy until
an Italian-led European force restored order.

 

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