Jan.05, 2010, 22:11 GMT

Colombia has extradited to the US the leader of a pyramid scheme which defrauded thousands of Colombians of their life savings.

David Murcia Guzman, who last month was sentenced in his native Colombia to 30 years in jail, will be tried in New York on money laundering charges.

Murcia - who insists his business was legal - led the DMG Group which promised returns of well over 100%.

Its collapse in 2008 led to street protests across Colombia by investors.

Street protests in Colombian cities have left at least two people dead

On Tuesday, 29-year-old Marcia was delivered to the US Drug Enforcement Administration (DEA), who flew him to New York.

He is wanted by the US justice system for allegedly laundering millions of dollars in drugs money. If convicted, Murcia faces up to 20 years in prison.

Murcia had used the proceeds from the scheme to live a life of luxury in Panama, which included renting the entire floor of a hotel.

He was extradited to Colombia in 2008 and jailed in December 2009.

The demise of DMG provoked protests both by those angry at the loss of their money and by investors who insisted that the company was legitimate and that the government had forced its collapse.