PEOPLE WHO put more than €500,000 into a pyramid scheme are to get half of their investment back, a court heard yesterday.
Barry Hanrahan (36), formerly of Kilnavara Court, Cavan, had €40,000 with him in Cavan Circuit Court yesterday. The court heard this 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 State prosecutor Monica Lawlor that Hanrahan had pleaded guilty to sample counts, and the loss to those who invested with him came to €542,000.
She suggested the compensation Hanrahan raised be divided among those named in the book of evidence as having been at a loss.
Det Garda James Murray said the amount raised by Hanrahan was roughly 50 per cent of what was invested, adding: “I suggest each client get 50 per cent of their investment.” Judge O’Hagan was given a schedule of proposed additional payments by Hanrahan. He adjourned the case for 12 months and remanded Hanrahan on continuing bail.