Dave’s Rants
Never Knowing when to shut up!
The Cork Pyramid Scheme
Published by Dave 2 years, 5 months ago in Politics/News and Business & MoneyI meant to write about this for ages and ages, I didn’t thus I’ve probably missed out on a huge barrage of negative comments from Cork people who have `invested’ in the `Liberty’ scheme and are now worried about their `investment’. Anyway I’ll recap the story for those who haven’t heard about it or who are only hearing about it for the first time now that it’s gone big in the National media.
So basically it first came to my attention back in December when it was mentioned by a couple of the West Cork people in work. It was also at that time that I began following the thread about the scheme on AskAboutMoney. It gave me loads of entertainment at that stage with the thread featuring some people who justified being in it. On Boards.ie I’ve even seen people who not alone justify being in it but who don’t understand that it’s a scam. Anyway back to the story.
So all went quiet and then at the end of February this thing seems to have caught fire in Cork City. I’ve heard countless stories about it, people saying they know loads of people who’ve made a fortune and stories about how their were tailbacks a couple of kilometres long on the roads leading to the Vienna Woods Hotel where one of the meetings was held recently. Crazy I’m sure you’ll all agree.
Anyway my favourite thing so far is that the presentation that is given has been uploaded to AskAboutMoney and I’ve also mirrored it on my webspace. It’s well worth looking at especially for the bit where they outline why this scheme isn’t a pyramid scheme.
First they show what a pyramid sheme looks like:
Then they show how the `Liberty’ scheme is different:
Guys, those are the same shapes one is just the other upside down! It really reminds me of this Simpson’s episode which contains this classic quote.
He [Homer] then works at the Pitiless Pup Attack Dog School, but not for long. Next, he attends a `Million$ for Nothing’ seminar.
First, let me assure you that this is not one of those shady pyramid schemes you’ve been hearing about. No sir. Our model is the trapezoid! – Shady seminar speaker at `Million$ for Nothing’
Anyway I’m counting down the days until this one all ends in tears, The Examiner have a number of stories on it today, so I reckon we’re nearing the bursting of this particular bubble! Does anyone have any stories related to this scam? If so leave a comment!
16 Responses to “The Cork Pyramid Scheme”
- 1 Pingback on Mar 15th, 2006 at 11:21 pm
- 2 Pingback on Mar 26th, 2006 at 1:18 pm
- 3 Pingback on Mar 26th, 2006 at 3:33 pm
- 4 Pingback on Apr 5th, 2006 at 5:00 am
How can people be so … “naive”
Great post Dave!
I like the Wikipedia article on Pyramid Shemes:
http://en.wikipedia.org/wiki/Pyramid_scheme
There’s a very nice diagram, showing how the number of people required to propagate the scheme very quickly exceeds the population of the world! Also, you can show in general (for a scheme with six at the top) that roughly 84% of people who get involved will lose their money!
I believe in the case of the Cork scheme it works out that 87.5% of people lose out?
Check out what can happen when a pyramid scheme gets really out of control.
I can’t believe in this day and age people would go into such an obvious scam. Many good friends have turned their back’s on each other because of it.
I’m from Cork and it’s going to take many All Irelands before people forget about this one.
Im sick of people ranting on about how bad and un ethical all these liberty scheme pieces
The fact is the original version of the liberty scheme ,which is totally legal is working and working well with the correct respectful and un ambiguous people in charge
Ethic swent out the window in this country years ago,so that old rant wont work folks
People,get involved in a close run system where you can trust the people in it……yopu will make money
Be stupid and thick like the many people who have got caught in the suspect speedball schemes…be prepared to loose money!
Dave, I don’t care whether or not you think a pyramid scheme is ethical or not, I don’t. As far as I’m concerned it’s no different than stealing €8,000 off family and friends or whatever.
At the end of the day there is no difference between Liberty and the Speedball schemes, both are pyramid schemes in which 87.5% of people will lose their investment.
Pyramid schemes work for the first few people who sign on, and there’s a huge volume of evidence out there, all over the world, where the payoffs are only theoretical, and used to ’sell’ the scheme. In the end they just end up separating gullible people from their money. It’s so unfortunate that even after all those who have already lost huge, this type of thing still gets defended.
If you’re one of the first few in, an ‘unambiguous’ and ‘correct’ person, you know how these schemes work and that YOU will get a payoff. The ethical issue here is making your money off parting other poor sods at the bottom from theirs.
And Dave, I’ve not yet seen anything in Ireland to suggest that ethical behaviour is no longer desireable or to be expected. Just because these schemes may be legal, does not make them defensible.
the scheme is in galway city and it is running perfectly just collecting 80000 las weekend .
long live the scheme
Fine, I couldn’t sleep at night knowing I stole money off idiots, you can. Good luck to you. Enjoy the fact you’re about half a rung above a drug dealer — profiting off the misery of others. Disgusting.
Also interesting you weren’t brave enough to give an email address or a real name.
Yes this guy is right, the scheme works, but it works the way it was designed to, and that’s by ripping off the many so that the few can get their payouts.
The amount of money generated by schemes such as this one is directly proportional to the amount of people that sign on. In other words there will never be enough money so that everyone is happy, it’s simple first year maths.
You’re right Dave, but i’d prefer to say the people that gave money into this were blinded by their own greed, rather than calling them idiots. If they took the time to even just type “pyramid scheme” into google they would have found enough information that would have told them not to touch it. But no, people only saw the euros. The sad thing is the guy above more than likely made his money by getting a member of his family to part with theirs. The wheel always turns and he’ll get his real “payout” soon enough.
It’s always the same: if something works for you, you become blind to see that there may also be bad behind it, and that others, more than likely your own family, will be hurt because of it.
It’s time people gave a shit about how their action’s affect others.
Great summing up of the situation. Those charts are hillarious.
The PowerPoint presentation is pretty funny, clearly describing a pyramid scheme but trying ever so hard to avoid the ‘p’ word. There is one quite sinister aspect to it though.
They say how important it is to trust the people you’re recruiting and paying money to. Chances are, the people you’re most likely to trust will be friends and family. Once this thing implodes, there are a few rich people and a hell of a lot of people who will be pissed off that their friends profited from them.
well you guys say 87% of the pyramid, (primarily the lower end will lose their money). well if the pyramid grows non stop. theoretically no one will ever lose money, because its not a set amount of people involved. the people who are trying to get rich quick will weed themselves out because they dont have the patience. you may also say, well obviously this guy is a vender of quixtar. wrong answer. I just look at the facts. its seems to me that if you join the program then with in 3-5 years you will begin to profit. well look at the other jobs in the world. if you wanna call amway a pyramid scheme then why wouldnt you call universities or these huge corporations like wal-mart a scheme who’s employee’s shop in the same store they work in, think about it! franchises. if anything is a scheme that is. you bash the guys that started this because they are filthy rich. well i say everyone is just jealous. stop whining about your corporate job, sitting in some cubicle in seattleor somewhere and do something about it.