Colombia Declares Emergency Over Investment Scams

From L.A. Times:

The alleged pyramid schemes have sparked disturbances in 12 states. Police are closing financial firms' offices and making arrests.

Reporting from Bogota, Colombia -- Colombian government officials declared a state of emergency Monday, boosting their powers of arrest and money seizure, to help deal with multimillion-dollar investment scams that have targeted mostly poor investors.

Panic spread last week among investors across Colombia after one suspect financial agency halted payments. Disturbances broke out in 12 states, police said, and investors stormed offices in the southwestern cities of Pasto and Popayan, threatening to lynch the managers.

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