Colombians who invested in the collapsed DRFE pyramid scheme lost more
than 6 billion pesos (US$290 million). Meanwhile, the country’s
Prosecution and President Álvaro Uribe blame each other for not having
acted against the pyramids sooner and calls for an economic emergency
grow.
Colombians who invested in the collapsed DRFE pyramid scheme lost more
than 6 billion pesos (US$290 million). Meanwhile, the country’s
Prosecution and financial authority blame each other for not having
acted against the pyramids sooner.
According to police officer Orlando Paez Baron, nearly 60 million pesos (US$29,000) of DRFE money has been recovered. The official called on Colombians to not loot any of the DRFE offices, because the computers may help authorities recover more money, they promise to return to the victims of the pyramid scheme.
The collapse of the pyramid scheme led to severe riots in the south of Colombia and left two dead so far. One victims committed suicide after finding out his life savings had gone up in smoke.
Colombian President Álvaro Uribe blames the prosecution of failing to act against the pyramids. The existence and potential threat of pyramid schemes have been in the news for over a year already and none of the companies involved in the scheme have ever been hampered in their activity by any authority.
Chief Prosecutor Mario Iguarán refuses to take the blame. He “does not accept that other institutions involved with the investigations against pyramids wash their hands in innocence at the cost of the Prosecution” and the National Police and the Finance Ministry were in charge of investigating possible money laundering involved in the pyramids.
The National Police announced there are 240 pyramid companies active in Colombia.
Business association Fenalco called for an economic emergency to deal with the massive loss of money by Colombians, because December sales will seriously be affected by the collapse of the pyramids.
Fenalco director Guillermo Botero said the Government must have all tools available to confront the crisis, denouncing the ignorance of Colombians towards financial scams like pyramids. “This is the only country in the world where people are queuing up to be scammed,” he said.