Pyramid scheme operators to be quizzed by gardaí

GARDAÍ are to question a number of people involved in the controversial Liberty pyramid system following formal complaints from investors who lost money in the €20 million scheme.

At least two people have contacted gardaí in West Cork and made written statements claiming they were lured into the scheme under false pretences.

Gardaí expected a flood of other complaints as the scheme, which has spread from Cork to Kerry, Clare, Limerick and the west of Ireland, begins to collapse.

“These people were given to understand they could retrieve their money if they wanted out of the scheme, but this was not the case.

“Those persons alleged to be involved in running the scheme will now be interviewed by gardaí,” a garda spokesperson said.

Chief Superintendent Richard Duggan also confirmed gardaí are investigating a number of incidents, possibly linked with reprisals from those who lost out in the scheme. These include:

Arson attack on a lorry.

Damage to plant equipment.

Criminal damage to a jeep and car.

He confirmed a number of meetings in relation to the scheme had ended in disarray at the weekend.

These included a meeting in Skibbereen, Co Cork, at which €200,000 was collected. However, all the money was returned to investors the following day.

There was also a tense standoff at a meeting in Bantry, Co Cork, after investors discovered that members of one family were the main beneficiaries.

Meetings continue to take place around Cork city and county, with large crowds gathering in the Vienna Woods Hotel in Glanmire on Tuesday night.

Gardaí are also investigating claims students at another secondary school in West Cork are operating a version of the Liberty scheme.

“We’ve been hearing about school kids investing €250 each but we are still waiting for a formal complaint before we can act,” the spokesperson said.

Yesterday, the Irish Examiner revealed investigations were under way in a West Cork secondary school, as well as in two schools in Mallow, Co Cork.

This followed reports that pupils were operating Speedball, a watered-down version of the Liberty scheme, where the initial investment is €1,000. Participation in the Liberty scheme requires a minimum investment of €5,000.

Separately, gardaí in Cork confirmed they would be speaking to the principal of a college for repeat Leaving Certificate students following rumours of student involvement in Speedball.

In what gardaí described as a “sinister development” it has also emerged that early investors in Liberty offered loans to others to involve them in the scheme.

The spokesperson said €5,000 was given if the person agreed to pay back €6,000 and €10,000 if the investor agreed to pay back €12,000. This equated to illegal moneylending.

Anyone with information can email [e-mail]