The Oregon Division of Financial Regulation (DFR) warned Oregonians about a type of pyramid scheme called gifting clubs. DFR said Death Row gifting club advertised online as a “community wealth share group.” More than 20 Oregonians lost investments of $1,400.
According to AARP, gifting clubs or cash-gifting clubs require new members to provide cash “gifts” with the promise that as more new members join, the members who joined earlier will have their initial investment repaid, plus an investment return. Pyramid scheme or gifting club victims may have a right to bring a claim against the perpetrators of the scheme, along with anyone who facilitated the scheme.
In Oregon, pyramid scheme or gifting club victims may have claims under the Unlawful Trade Practices Act (see ORS 646.608(1)(r) and 646.609 (defining “Pyramid club”)), the Oregon Securities Law in ORS Ch. 59, common law fraud, and other claims. Some of these claims have a short statute of limitations, such as the Unlawful Trade Practices Act, which ordinarily requires that a claim be brought within one year after the discovery of the unlawful method, act or practice. ORS 646.638(6).
