Gardaí in west Cork have warned that anyone investing in a so-called "pyramid" selling scheme in the area, who encourages others to "gift" money to the scheme, could face criminal prosecution.
This means they could face a fine of up to €12,700 and/or two years in jail for their involvement under the Pyramid Selling Act of 1980.
The warning comes after it emerged that several individuals living in the area may be planning to travel on a flight to Munich, departing tomorrow from Cork airport, to hand over thousands of euro to the organisers of the multimillion euro scheme.
Some of those travelling are understood to have collected money in €500 notes from other people and are acting on their behalf.
Once they arrive, they are told to go to a hotel room, where they "gift" the money to an unknown person.
They are also asked to sign a disclaimer stating that the money donated is an "unconditional gift" and that they have not been pressurised into donating it.
The scheme, which is operating in a number of areas in Cork, including Bandon, Kenmare, Dunmanway and Bantry, actively encourages participants to recruit others known to them.
In return, the scheme, operated by an organisation called Liberty Systems and which at entry level asks people to buy a share of one of eight "balls" for €20,000, promises eventual payouts of between €40,000 to €80,000.
But gardaí are warning people that they have little guarantee of receiving these payouts.
Speaking to The Irish Times last night, Sgt Gerry McCarthy of Bandon Garda station, said the penalty for encouraging or coercing others to invest in the scheme was a fine of up to €12,700 and/or up to two years in prison.
"We're concerned about the way this scheme is organised and believe people could get badly burned financially. We are urging them to seek sound financial advice," he said.
"We have made no arrests in relation to it at present, but we are monitoring the situation on an ongoing basis."
Last Tuesday two gardaí, including Sgt McCarthy, went undercover at a meeting of the scheme at a hotel in Bandon which was attended by some 120 people.
Speaking on RTÉ Radio's Liveline programme yesterday, Sgt McCarthy said the female presenter did not identify herself to those present.
She will be interviewed by gardaí in the coming days. Another meeting of the scheme took place in the area last night, with several others having been held in recent days.