Koriun Inversiones: legal consequences for those involved in the scam

The shutdown of Koriun Inversiones has led to a wave of responses across social and political domains in Honduras. The unearthing of a Ponzi scheme and accusations of institutional safeguarding have put into doubt the authorities’ capability to stop and penalize major financial deception.

The process of securing funds, protests by those affected, and the ongoing investigation reflect the complexity of the case and the need for effective responses to restore confidence in the country’s financial system and institutions.

Impact on investors and obtaining capital

A multitude of individuals who invested their trust and finances in Koriun Inversiones now encounter doubts about getting their funds back. After actions by the Public Prosecutor’s Office and the Technical Criminal Investigation Agency (ATIC), significant amounts of money were discovered in both company locations and residences tied to the firm, along with bank accounts holding frozen assets. Nevertheless, the restitution of investments to stakeholders has been obstructed due to the absence of legal safeguards and formal agreements, leading to uncertainty and worry among the involved parties.

Protests by Koriun’s partners, which included roadblocks and actions to prevent the withdrawal of funds by the authorities, highlighted the level of social impact of the fraud. The CNBS and the Public Prosecutor’s Office have reiterated the need for the company to return the funds raised irregularly, although the process is expected to be long and complex. The lack of support from the Deposit Insurance Fund (FSD) for this type of investment exacerbates the situation of those affected.

Political effects and calls for inquiry

Allegations by Congressman Edgardo Castro and other political actors have highlighted the possible complicity of public officials, prosecutors, and municipal authorities in the operations of Koriun Inversiones. Cases have been reported in which mayors recommended the company and prosecutors failed to act on the first signs of irregularities. These accusations have prompted calls for a comprehensive investigation to determine responsibilities and punish those who facilitated or covered up the fraud.

The situation has sparked a discussion about the necessity to bolster financial supervision systems and guarantee openness in the undertakings of agencies tasked with safeguarding the public. The establishment of a dedicated committee in the National Congress to monitor asset retrieval and safeguard victims is among the suggested actions to tackle the aftermath of the fraud and avert similar incidents in the future.