Page "Pyramid scheme" Paragraph 35

On 12 November 2008, riots broke out in the municipalities of Pasto, Tumaco, Popayan and Santander de Quilichao, Colombia after the collapse of several pyramid schemes.

Thousands of victims had invested their money in pyramids that promised them extraordinary interest rates.

The lack of regulation laws allowed those pyramids to grow excessively during several years.

Finally, after the riots, the Colombian government was forced to declare the country in a state of economic emergency to seize and stop those schemes.

Several of the pyramid's managers were arrested, and are being prosecuted for the crime of " illegal massive money reception.