Chain money ‘racket’ is brought to Gorey

February 1983

A chain money racket has been spreading around Gorey, where numerous people are forking out £40 for the chance of making quick money.

Known as ‘ The Circle of Gold’, the racket was brought to town three weeks ago by a young business person. But this week, a Garda spokesman warned that anyone promoting or participating in the Circle is breaking the law. Such rackets are rendered illegal under the Pyramid Selling Act of 1980, he said.

The Circle of Gold, which has also been banned in England, operates on the basis of a continuous list of twelve names and addresses of people participating at a given time. The list which has found its way to Gorey was bought in Dublin for £40. The idea is that the buyer sells the list to two people for £20 each, recouping the original investment. The two people must also send £20 each to the first person named on the list. To recover the £40 they have spent, they must each now sell the list to two other people, and so the chain continues. Before passing the list on, each buyer places his or her name at the bottom. As the name on the bottom of the list moves towards the top position, over 4,000 people will need to become involved before the 12th name on the list becomes the first name. Ideally then, these 4,000 people will be sending £20 each to that person, providing a return of £80,000. But the chances of every participant making money are minimal. After a period of circulation in any one area, the racket becomes inoperable, and hundreds of people lose out. And the official word from Gardai is that they are also liable for prosecution.