50% compo over pyramid scheme

PEOPLE who put more than €500,000 into an unsuccessful pyramid scheme are to get half of their investment back a court heard yesterday.

Before the court was Barry Hanrahan, aged 36, formerly of Kilnavara Court, Cavan, who had brought €40,000 with him to Cavan Circuit Court yesterday. This, the court heard, brought the amount he has gathered in compensation to €245,392.

Hanrahan, who also has an address in Hackney, London previously pleaded guilty to 10 offences contrary to the Investment Intermediaries Act 1995.

They are that at locations in Dublin, Meath and Cavan on dates in 2001 and 2002 he acted as an investment business firm or broker without the authorisation of the Irish Financial Services Regulatory Authority.

Yesterday, Judge John O’Hagan was told by Monica Lawlor, for the state, that Hanrahan had pleaded guilty to sample counts and the loss to the parties who had invested with him came to €542,000.

She suggested that the compensation raised by Hanrahan be divided amongst those named in the book of evidence as having been at a loss.

Detective Garda James Murray said the amount raised by Hanrahan was about 50% of what was invested and “I suggest each client get 50% of their investment”.

Judge O’Hagan was given a schedule of proposed additional payments to be made by Hanrahan and said that he believed the accused was doing everything possible to repay the money.

He said he did not believe people would gain money but they would get their investment back and that is extremely important. He adjourned the case for 12 months and remanded Hanrahan on continuing bail.