The State of Oregon, specifically the Oregon Department of Consumer and Business Services securities regulators have levied over $2 million in total fines to four companies and 11 salespeople stemming from a fraudulent timeshare investment scheme.
Overall, investors across the nation lost over $428 million to Ponzi scheme that allegedly guaranteed investors 9 to 11 percent returns on their money. Many investors who are elderly lost a significant portion of their retirement funds to the scheme reminenscent to the Madoff crime, subtituting stocks with timeshares in Mexico.
A number of salespeople also claim that that were victims of fraud. They never were paid commissions on “sales”. But also a number of salespeople did not have the proper licenses to be marketing and selling securities based on real estate. The fines have poured further salt onto an open wound.
Ten other states have taken action as well. The U.S. Securities and Exchange Commission and the Department of Justice also are investigating. Criminal charges are also bring brought forth.