Donegal properties raided in pyramid scheme investigation

‘Health and wellness’ company focus of surprise searches on Tuesday

Conviction for crime could carry fine of up to €150,00 or up to five years in prison. Photograph: iStock
Conviction for crime could carry fine of up to €150,00 or up to five years in prison. Photograph: iStock

Consumer watchdog staff raided two properties this week as part of an investigation into a pyramid scheme.

Irish law bans pyramid schemes, where participants are rewarded for recruiting others, who normally pay to join, rather than for selling any goods or services.

The Competition and Consumer Protection Commission confirmed that it carried out surprise searches of two properties in Co Donegal as part of an investigation into a pyramid scheme run by a "health and wellness" company.

"On Tuesday, two properties were searched under warrant by officers from the CCPC and the Food Safety Authority of Ireland (FSAI), who were separately verifying compliance with the requirements of food law," said a commission statement on Thursday.

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Local gardaí and officers from the force's National Economic Crime Bureau supported the commission and food safety staff.

The commission can carry out surprise searches of businesses and homes on foot of a District Court warrant to uncover evidence for an investigation.

Anyone convicted of participating in, operating or promoting a pyramid scheme faces fines up to €150,000 or up to five years in prison.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas