Yet another criminally stupid marketer. Meet Carol Anderson Neff of Oregon and her gifting scam.
19363 WILLAMETTE DR. SUITE 101,
WEST LINN, OR 97068
671 Marylhurst Circle,
West Linn, OR 97068
email@example.com (may have been left by the site designer, but appeared attached to Carol's name)
641-715-3800 PIN code 10260
Unknown but confirmed connection to:
nwbaconsulting.com (owned by HORIZONWES@AOL.COM)
Domain Name: prosperityclubofamerica.com
Registry Domain ID: 13067062
Registrar WHOIS Server: whois.1und1.info
Registrar URL: http://1and1.com
Updated Date: 2015-03-02T00:00:00Z
Creation Date: 2015-01-27T00:00:00Z
Registrar Registration Expiration Date: 2016-01-27T00:00:00Z
Registrar: 1&1 Internet AG
Registrar IANA ID: 83
Registrar Abuse Contact Email: firstname.lastname@example.org
Registrar Abuse Contact Phone: +1.8774612631
Domain Status: clientTransferProhibited https://www.icann.org/epp#clientTransferProhibited
Registry Registrant ID:
Registrant Name: Carol Neff
Registrant Street: 19363 Willamette Dr
Registrant City: West Linn
Registrant State/Province: OR
Registrant Postal Code: 97068
Registrant Country: US
Registrant Phone: +1.8885622326
Registrant Phone Ext:
Registrant Fax Ext:
Registrant Email: email@example.com
Registry Admin ID:
Admin Name: Carol Neff
Admin Street: 19363 Willamette Dr
Admin City: West Linn
Admin State/Province: OR
Admin Postal Code: 97068
Admin Country: US
Admin Phone: +1.8885622326
Admin Phone Ext:
Admin Fax Ext:
Admin Email: firstname.lastname@example.org
Registry Tech ID:
Tech Name: Hostmaster ONEANDONE
Tech Organization: 1&1 Internet Inc.
Tech Street: 701 Lee Rd.
Tech City: Chesterbrook
Tech State/Province: PA
Tech Postal Code: 19087
Tech Country: US
Tech Phone: +1.8774612631
Tech Phone Ext:
Tech Fax: +1.6105601501
Tech Fax Ext:
Tech Email: email@example.com
Name Server: ns1.condormarketing.com
Name Server: ns2.condormarketing.com
The club claims:
The Compensation Plan
There are 7 people in each group. The group leader, 2 people on Level 1 and 4 people on Level 2
Each time you enter a new Phase, you always enter on Level 2 and move up to group leader. There are 8 Phases and everyone
gets to be group leader 8 times. So it is always bottom to top and top to bottom- over and over through 8 Phases.
Our Compensation Plan is Simple, You can choose to re-invest in yourself or stop at any time.
Entrance is on a first come basis. You can enter any Phase as many times as you want as long as you complete phase 1.
Phase 1: You pay $100.00 plus $20.00 to administration. Four people pay you $100.00.
You make $400.00 minus $120 entrance and administration fee.
Phase 2: You pay $200 plus $25.00 to administration. Four people pay you $200.00.
You make $800.00 minus $225 membership and administration fee.
Phase 3: You pay $400 plus $25.00 to administration. Four people pay you $400.00.
You make $1600.00 minus $425 entrance and administration fee.
Phase 4: You pay $800 $25.00 to administration. Four people pay you $800.00.
You make $3200.00 minus $825 entrance and administration fee.
Phase 5: You pay $1,600 plus $40.00 to administration. Four people pay you $1600.00.
You make $6400.00 minus $1640 entrance and administration fee.
Phase 6: You pay $3,200 plus $40.00 to administration. Four people pay you $3200.00.
You make $12,800.00 minus $3240 entrance and administration fee.
Phase 7: You pay $6,400 plus $40.00 to administration. Four people pay you $6400.00.
You make $25,600.00 minus $6440 entrance and administration fee.
Phase 8: You pay $12,800 plus $40.00 to administration. Four people pay you $12,800.00.
You make $51,200.00 minus $12,840 entrance and administration fee.
Oregon's government says, however, at http://www.cbs.state.or.us/dfcs/secu...f/gifting.html
Gifting clubs and pyramid schemes
Many Oregonians are being defrauded by unlawful pyramid schemes operating under the guise of so-called "gifting clubs"
such as the Dinner Club or Women's Empowerment Network. These "clubs" are elaborate scams designed to make money for a few at
the expense of many.
The promoters of the scheme claim that IRS regulations allow people to "gift" one another up to $10,000 per year tax
free. For example, persons are asked to pay $5,000 to enter at the bottom of the pyramid or "tree" along with others. As
these people encourage others to join the club, they rise on the tree to the top position, where the total amount collected
from "gifts" is $40,000, a $35,000 profit. Often, people at the top re-invest another $5,000 and start the process anew.
Each of the eight persons just entering the tree delivers his/her $5,000 "gift" directly to the person at the top of the
pyramid. This also helps convince new players that they will eventually receive a $35,000 return on their "gift."
These schemes are doomed to failure. Each "tree" involves 8 persons who "gift" $5,000 each. The person at the top of the
tree gets $40,000 and the other 7 people hope that enough players come on board to push them to the top. For each person at
the top, there are 8 people who are likely to lose their investment and the chance of a big "payoff." Eventually, these
schemes collapse because they run out of prospective participants.
No matter what the promoters may tell you, gifting clubs are illegal. They are unlawful pyramid schemes. Gifting clubs
and pyramids have not been approved by the Oregon Attorney General, local district attorneys, or the Division of Finance and
Corporate Securities. Operating or participating in a pyramid scheme violates Oregon's Unlawful Trade Practices Act, which
imposes civil penalties of up to $25,000 per violation.
Gifting clubs and pyramid schemes may also violate Oregon securities laws by virtue of being investment contracts. Oregon
law requires securities to be registered and licenses for persons engaged in transacting business in securities. A violation
of the securities laws could subject a person to civil penalties of up to $20,000 per violation, or criminal prosecution as a
class B felony.
The IRS does not recognize gifting clubs or pyramid schemes and considers all money gained from these schemes to be
reportable income. Failing to report income from pyramid schemes on your tax return, or attempting to hide such monies may
subject you to severe federal civil and criminal penalties.
What can you do?
Don't participate! If you have, ask for your money back.
Warn others not to get taken in by these schemes.
Call: Your local law enforcement agency, the Division of Finance and Corporate Securities, or the Oregon Department
of Justice Consumer Protection Hotline (877) 877-9392, and report the promoters. The Department of Justice has a web page
which specifically addresses pyramids.
You can e-mail questions or send information about these schemes or their promoters to firstname.lastname@example.org.
Our address is:
DFCS - Enforcement Unit
350 Winter St. NE, Ste. 410
Salem, Oregon 97301-3881
(503) 378-4387 voice
(503) 947-7862 fax
(503) 378-4100 TTY