Colombia: Shock, anger over failed “pyramids”

A new house.

The savings of a young couple.

The financial future of an upcoming child.

These were a few of the aspirations held by thousands of Colombians who placed their trust in so-called “pyramid” businesses around the country. These firms targeted lower-class people in cities and often functioned out of rented storefronts in poor neighborhoods. The faux-financiers touted as much as 150% return as long as investors gave them their money and signed contracts promising not to withdraw it.

Over the past few weeks, several of these “pyramids” have shutdown under the cover of darkness and the executives have fled. In their wake are duped customers clamoring for their lost savings and desperately seeking answers. Yesterday, their rage reached a boiling point as riots flared in several cities:

Police used batons and tear gas to control angry investors and curfews were declared in several cities.

In Popayan in the south-western department of Cauca, 2,000 depositors stormed an investment firm's offices.

In Pereira, in Risaralda, police caught two men hurrying out the back door of a scheme's office with suitcases of cash.

They offered one of the cases to the police to let them go.

Who’s to blame? There are those that fell for the Ponzi schemes, the unscrupulous men running the firms, and even the government who didn’t intervene to stop the obvious scams.

In the end, there are the dreams deferred of the victims whose savings have been apparently wiped out. The goals mentioned at the top of this post represent those of some of my family whose aspirations served as carrion for vultures. Their situation- like so many others- is heartbreaking and hopefully one that can serve as a lesson.

Image- AFP (“A man holds a sign reading "what about my money?" in Popayan, department of Cauca, Colombia.”)
Sources- AHN, BBC News