Gardaí in west Cork are investigating an incident in which a woman who was operating a Liberty pyramid scheme was allegedly falsely imprisoned by irate investors demanding the return of their money.
The woman, who is living in Clonakilty, reported to gardaí that she was threatened and intimidated by up to 30 people last Wednesday. She told gardaí she feared for her life after the group came to her home and forced her to go to an ATM in the town to withdraw cash.
It is understood the woman was organising a variation on the Liberty pyramid scheme which originated in west Cork last summer and has spread to Cork city, Clare, Kerry and Limerick. Investors in her scheme were asked to contribute €1,000 to buy in, with a return of €8,000.
Meanwhile, Minister for Enterprise, Trade and Employment Micheál Martin is examining how he can tighten consumer legislation to offer more protection against pyramid schemes.
Under existing regulations it is not illegal to invest in a pyramid scheme but it is against the law to entice others to invest.
Gardaí estimate that up to €12 million has been invested in the Liberty pyramid scheme nationally since last summer.
Those participating are investing €10,000 each and are asked to hand it over to individuals in Germany in the hope of making a significant profit.
The Department of Enterprise, Trade and Employment plans to introduce a major piece of consumer legislation across a range of areas, including pyramid selling. This new directive is expected to be introduced in July 2007.