Con artist taunt victims of Ponzi scheme in Colombia

Guardian:

Riots have flared across Colombia over the collapse of a pyramid investment scam that left thousands of investors broke and furious. Police used teargas and batons to quell crowds that tried to storm the offices of rogue investment firms, some of which had left notes taunting their victims for being gullible.

Mobs smashed doors and windows in a vain effort to enter the premises and recoup savings, or at least take revenge on fraudsters, who had vanished overnight.

"Dear investors, thanks for trusting us and depositing your money," said a note on the door of a company in the province of Cauca. "Now, for being stupid and believing in financial witchcraft, you will have to work for your money."

Enraged investors looted the company's office before being subdued by riot police. In Pereira, police allegedly arrested two loan managers fleeing out of the back door of an investment office with four suitcases filled with cash. The two are said to have tried to buy their freedom by offering police some of the money, only for bribery to be added to their charge sheet.

The government has launched an investigation into how a network of at least 66 agencies in nine cities conned so many people, promising returns of up to 150%. One agency alone had managed to take in more than £110m in the last four months, the finance ministry said. High fees deter many poorer people from putting their money into banks in Colombia.

Oscar Naranjo, the head of the country's police, said the scheme appeared to be a money-laundering enterprise organised by drug traffickers. President Álvaro Uribe has urged congress to pass a law penalising the fraudsters.

...

What is unusual about this scam is the taunting of the victims rather than continuing the con with excuses that usually follows the toppling of the pyramid in schemes in this country. Usually the investors are so hooked on the scam that you can't talk them out of it. I had a client one time who could not be convinced he was dealing with a scam and he kept pouring his "profits" back into it. That begot more "profits" which he bragged about to his friends who wanted in on the deal. He wound up losing everything he invested as did his friends. He did tell me he wished he had listened to me sooner.

I suspect that Colombia already has a law against investment fraud that covers the scam. They don't need to write another.