28.12.05

Ecuadorean Pyramid Scheme Sparks a Panic - Yahoo! News

: "QUITO, Ecuador - A 71-year-old provincial notary who died in a luxury hotel room earlier this year left behind a teenage girlfriend ? who said he'd been on cocaine and Viagra ? and a crumbling $800 million pyramid scheme that has blossomed into a nationwide scandal.
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Jose Cabrera's sudden death sparked panic among thousands of people who gave him a minimum of $10,000 each over two decades in exchange for up to 10 percent monthly interest.

Most were rank-and-file police and military personnel ? more than 6,500 of them ? and residents of Machala, the port city where Cabrera was based. But the scandal has spread to high-ranking current and former military officials, judges, politicians and their families.

The head judge of the Machala Superior Court resigned after acknowledging that he had invested $15,000. Ecuador's former commander of the Joint Chiefs of Staff put in $45,000 and the wife of a former defense minister contributed $125,000, local media have reported."

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