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Colombian scam suspect extradited | Colombian scam suspect extradited |
(about 1 hour later) | |
Panama has extradited a Colombian man suspected of running the country's biggest pyramid scheme, which collapsed last week after taking $200m (£133m). | Panama has extradited a Colombian man suspected of running the country's biggest pyramid scheme, which collapsed last week after taking $200m (£133m). |
David Murcia Guzman was president of the DMG Group, whose collapse led to street protests across the country by investors, in which two people died. | David Murcia Guzman was president of the DMG Group, whose collapse led to street protests across the country by investors, in which two people died. |
Mr Murcia Guzman faces charges including money-laundering and illicit enrichment. He denies the allegations. | Mr Murcia Guzman faces charges including money-laundering and illicit enrichment. He denies the allegations. |
DMG had promised investors returns of up to 150% a month on their deposits. | DMG had promised investors returns of up to 150% a month on their deposits. |
On Wednesday, Colombia's attorney general said prosecutors had evidence that the company was also a front for money-laundering. | On Wednesday, Colombia's attorney general said prosecutors had evidence that the company was also a front for money-laundering. |
Rapid ascent | Rapid ascent |
The rise of Mr Murcia Guzman has been spectacular, says the BBC's Jeremy McDermott in Colombia. | The rise of Mr Murcia Guzman has been spectacular, says the BBC's Jeremy McDermott in Colombia. |
Protests in several Colombian cities left at least two people dead | Protests in several Colombian cities left at least two people dead |
In just a couple of years, he went from being a poor cameraman's assistant to the head of DMG, a multi-million dollar business. | In just a couple of years, he went from being a poor cameraman's assistant to the head of DMG, a multi-million dollar business. |
His fall looks like it will be even quicker, our correspondent says. | His fall looks like it will be even quicker, our correspondent says. |
The 28-year-old was extradited to Colombia to face accusations that his business was a pyramid scheme that duped at least 200,000 Colombians out of their life savings. | The 28-year-old was extradited to Colombia to face accusations that his business was a pyramid scheme that duped at least 200,000 Colombians out of their life savings. |
The irony is that DMG had not shut its doors to investors and was continuing to honour its obligations. | The irony is that DMG had not shut its doors to investors and was continuing to honour its obligations. |
Unlike other schemes, which had shut up shop and escaped with the money collected, DMG was still operating until the police closed its 60 branches across Colombia. | Unlike other schemes, which had shut up shop and escaped with the money collected, DMG was still operating until the police closed its 60 branches across Colombia. |
Venezuela and Ecuadorian authorities have followed suit by shutting offices in their respective countries. | Venezuela and Ecuadorian authorities have followed suit by shutting offices in their respective countries. |
Indeed, our correspondent adds, there have been protests against the government by DMG investors who insist that the company is legitimate and that the government has now forced its collapse. | Indeed, our correspondent adds, there have been protests against the government by DMG investors who insist that the company is legitimate and that the government has now forced its collapse. |
Investigations by the Colombian authorities show that DMG was the most sophisticated of all the pyramid schemes. | |
Police are also investigating leads that suggest DMG received money not only from drugs-traffickers but Marxist rebels and right-wing paramilitaries involved in Colombia's four-decade old civil conflict. | Police are also investigating leads that suggest DMG received money not only from drugs-traffickers but Marxist rebels and right-wing paramilitaries involved in Colombia's four-decade old civil conflict. |
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