Oregon’s Protections For Victims Of Investment Fraud
If you’ve discovered that your “guaranteed” investment was actually a Ponzi scheme or that your financial advisor lied about where your money was going, the feeling of betrayal is overwhelming. But in Oregon, you have a powerful ally that many other states don’t offer: ORS 59.115.
Oregon’s securities laws (often called “Blue Sky Laws”) are among the most investor-friendly in the country. Here is a breakdown of how ORS 59.115 works and why it might be your best path to financial recovery.
What is ORS 59.115?
At its core, ORS 59.115 is a statute that holds people accountable for selling securities through fraud, untruths, or even “technical” violations (like failing to register the investment with the state).
The most important thing for victims to know is that Oregon law doesn’t just go after the “con artist” at the center of the scheme—it casts a much wider net.
1. You Don’t Just Sue the Scammer
In many fraud cases, the person who actually stole the money is long gone or broke. Oregon law recognizes this. Under ORS 59.115(3), you can often hold “secondary” parties liable if they participated in or materially aided the sale. This can include professionals who participated in or provided material aid to the scheme, such as accountants, lawyers, and banks.
2. The Due Diligence Requirement
In a standard fraud case, you usually have to prove the person knew they were lying (this is called “scienter”). Under Oregon’s securities law, the burden is often flipped. Anyone who participated or materially aided the sale is “jointly and severally” liable for the full amount of the loss unless they can prove they did not know, and in the exercise of reasonable care could not have known, of the violation of the Oregon securities laws they participated in.
What Can You Actually Recover?
Oregon law aims to make the victim “whole” again. If you win a claim under ORS 59.115, the formula generally includes:
- Your Full Principal: The total amount of money you invested.
- Statutory Interest: Interest on your money (currently 9% per year under ORS 82.010) calculated from the day you made the investment.
- Attorney Fees & Costs: This is the “hammer.” The court has the power to order the defendants to pay your legal bills, making it possible for attorneys to take these cases on a contingency basis.
The Clock is Ticking: Statutes of Limitations
You cannot wait forever to file a claim. In Oregon, the general rule for securities fraud is:
- 3 years from the date of the sale; OR
- 2 years from the date you discovered (or should have discovered) the fraud.
Whichever comes later—but there are ultimate “caps” on these timelines, so acting the moment you suspect foul play is critical.
Do You Have a Claim?
If you live in Oregon or invested in an Oregon-based company and believe you were misled, you shouldn’t have to navigate the recovery process alone. Please contact us.