Two participants in a pyramid investment scheme called "Women Empowering Women" yesterday lost their case in Dublin District Court.
Judge Michael O'Leary dismissed an action taken by a brother and sister after he found that they had failed to show the ingredients necessary to establish that there was a contractual relationship between them and the main beneficiary of the scheme.
Rose and Dermot Snedker sued Linda Laird for breach of contract and misrepresentation after they invested €5,713 in the expectation that they would make €45,720 in eight weeks. A friend of Ms Laird's, Hazel Johnson, was sued separately and that case was also dismissed.
Judge O'Leary said that the scheme operated by way of people coming in at the lowest tier and gifting money to others on the basis that contributions would come in from a "never-ceasing flow of new entrants", which was clearly unsustainable.
"Nemesis was an in-built feature of the scheme from the start. An early minority would win, but a large majority would always lose".
Judge O'Leary said that the case did not come within the scope of the 1980 Pyramid Selling Act. It was clear from Mr Snedker's evidence that he had signed a gifting certificate to Ms Laird, but this did not represent a contractual relationship.
The key to success in the WEW scheme, which at its height involved an estimated 4,000 to 6,000 people in Ireland, was to get into it as early as possible and then get out quickly, Ms Laird had said in evidence.
Dermot Snedker had lined up two relatives to contribute to the scheme, but planned meetings at which new people were introduced had been cancelled by Ms Laird, he told the court.