Colombian scam suspect extradited

Mr Murcia Guzman made a fortune of tens of millions in just a few years

Panama has extradited a Colombian man suspected of running the country's biggest pyramid scheme, which collapsed last week after taking $200m (£133m).

David Murcia Guzman was president of the DMG Group, whose collapse led to street protests across the country by investors, in which two people died.

Mr Murcia Guzman faces charges including money-laundering and illicit enrichment. He denies the allegations.

DMG had promised investors returns of up to 150% a month on their deposits.

On Wednesday, Colombia's attorney general said prosecutors had evidence that the company was also a front for money-laundering.

Rapid ascent

The rise of Mr Murcia Guzman has been spectacular, says the BBC's Jeremy McDermott in Colombia.

Protests in several Colombian cities left at least two people dead

In just a couple of years, he went from being a poor cameraman's assistant to the head of DMG, a multi-million dollar business.

His fall looks like it will be even quicker, our correspondent says.

The 28-year-old was extradited to Colombia to face accusations that his business was a pyramid scheme that duped at least 200,000 Colombians out of their life savings.

The irony is that DMG had not shut its doors to investors and was continuing to honour its obligations.

Unlike other schemes, which had shut up shop and escaped with the money collected, DMG was still operating until the police closed its 60 branches across Colombia.

Venezuela and Ecuadorian authorities have followed suit by shutting offices in their respective countries.

Indeed, our correspondent adds, there have been protests against the government by DMG investors who insist that the company is legitimate and that the government has now forced its collapse.

Investigations by the Colombian authorities show that DMG was the most sophisticated of all the pyramid schemes.

Police are also investigating leads that suggest DMG received money not only from drugs-traffickers but Marxist rebels and right-wing paramilitaries involved in Colombia's four-decade old civil conflict.