Honduras Court Keeps Koriun Ex-Manager in Prison
An appeals court in Honduras upheld the case against the Koriun ex-manager, who stays in prison. Raids found about US$13.3 million; investors still wait. The post Honduras Court Keeps Koriun Ex-Manager in Prison appeared first on The Rio Times .
A Honduras appeals court has upheld the case against the former manager of Koriun Inversiones, so he stays in preventive prison. Koriun was an unauthorised investment business in Choloma that collapsed after raids in April 2025.
Supreme Court of Justice (CSJ) spokesman Carlos Silva announced the ruling on Friday 2 October 2026. El Mundo reported that the court rejected all defence appeals, and the broadcaster HCH also reported the ruling.
The ruling came from the appeals court for organised crime, environment and corruption cases. It confirmed the “auto de formal procesamiento”, the order that formally opens criminal proceedings against a defendant.
Prosecutors allege that Iván Abad Velásquez Castro committed money laundering, disobedience, illegal possession of firearms and ammunition, and criminal association. He has not been convicted and is presumed innocent.
Silva said the preventive detention therefore continues. He added that no new request to review the measure was pending, after an earlier one was rejected.
The court also confirmed the indictments of Marcos Abel Villeda Galdámez and Juan Carlos García Ríos. Both face money laundering and criminal association charges and also remain in preventive prison.
A fourth defendant, Kefi Esmeralda Gavarrete Sánchez, faces the same two charges. She remains free under house arrest and other conditions because she had recently given birth, Silva said.
Koriun promised investors returns of 5 percent a week, La Prensa reported in February 2026. The paper put the number of people affected at about 30,000.
On 23 April 2025 prosecutors raided the Choloma head office, five branches and Velásquez’s home. El Heraldo reported they found L358.2 million in cash (about US$13.3 million), including L125 million (about US$4.7 million) at the house.
La Prensa reported that in May 2025 frozen accounts were released and L69.2 million (about US$2.6 million) ordered returned to investors. A year after the raids, the paper said, most of the money could not be traced.
Velásquez was first sent to preventive detention in May 2025, according to El Heraldo. US$ figures use 26.85 lempiras to the dollar, the rate on 2 October 2026.
On 17 September defence lawyer Omar Dubón told El Mundo that Velásquez had been beaten in the maximum-security unit at Támara prison. He said he would seek house arrest, and the authorities have not publicly confirmed the alleged assault.
Some investors back him. On 25 September a group marched through Choloma demanding his release, HCH reported, saying he had promised to repay them once free.
The regulator has tried to prevent new cases, as covered in Honduras CNBS Warns Public as Investment Fraud Schemes Proliferate . On 25 August the National Banking and Insurance Commission (CNBS) warned that such schemes were spreading.
No date for the trial stage has been reported, and the forensic report on Velásquez from 3 September has not been released. It is also unclear whether the defence will file a new request for house arrest.
Above all, investors do not know how much of their money can be recovered. For background on the country, see Honduras Explained 2026: The Country, Its Politics, Its Economy and What to Watch .
A business based in Choloma, northern Honduras, that took money from the public and promised 5 percent weekly returns. It operated without authorisation from the financial regulator, according to El Heraldo.
No. The appeals court only confirmed that the case against him goes forward and that he stays in preventive detention. He is presumed innocent until a court rules otherwise.
That is not yet clear. Part of the frozen funds was ordered returned in May 2025. But La Prensa reported in February 2026 that most of the cash could not be traced.
Sources: El Mundo , 2 October 2026; HCH , 2 October 2026; El Heraldo , 12 September 2026; La Prensa , 15 February 2026; El Mundo , 17 September 2026; HCH , 25 September 2026.
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