According to the Oregon Division of Financial Regulation, a “gifting club” called Death Row has been operating illegally and has scammed over 20 Oregonians out of their money. The Division advises all to be wary of such pyramid schemes.
Last year, Death Row gifting club began advertising themselves online as a club to “share money” and make profit. Recruitees were promised the prospects of high financial returns in exchange for their $1,400 initial investments, as long as they recruited more members in turn.
According to the ODFR, the main red flag of “gifting clubs” and similar pyramid schemes is that no money is generated by any kind of goods or services. Instead, money just changes hands based on recruitment of investors. This differs from legal companies with similar structures, like online sales-focused “mid-level management” companies, as those businesses are vendors who sell some type of goods or services, and also emphasize recruitment of investors/freelancers.
In the days of the internet, it is all too easy for scam schemes like this to arise and propagate. With financial security and trustworthiness always a question online, it is best to err on the side of caution, and remain vigilant for red flags.
If you spot advertising or marketing for a pyramid scheme or gifting club, or if you believe you may be a victim of such a scam, the ODFR advises that you contact their consumer advocacy team. They also ask anyone with further information about the Death Row gift club to get in touch.