From what I hear, If you do, 1 refers 2 and 2 refers 3, then when all three are grouped, then 1 won't get the bonus because 2 can't be a veteran and recruit at the same time.

I plan on doing...

1 refers 4
1 refers 5
2 refers 3

Transferring toons from my old account to the new accounts 3, 4, and 5.