Women Lose Thousands In 'Gifting' Scam

BOSTON -- It promises a quick profit in the name of charity -- women helping women.

NewsCenter 5's Jorge Quiroga reported that across New England, hundreds of women who lost hundreds of thousands of dollars are learning the hard way this is just the latest scam.

From her beautiful Maine country spread, Lorianne Jackson, a legal secretary, seems an unlikely suspect in an illegal scheme.

She allegedly received thousands of dollars that was forked over by friends, neighbors and relatives.

The police have already been called. Jackson and two dozen other women are charged with running a scheme that left women, like Gina DeJoy, thousands of dollars poorer.

"The pitch was women helping women, women don't succeed, and we are a group of women who help other women," DeJoy said.

Cloaked in the language of sisterhood and charity, DeJoy was talked into joining a women's gifting circle.

Give $5,000 to another woman in need and in a short time DeJoy was promised her money back eightfold -- $40,000.

"The first thing they did was ask, 'How many people in this room have made it around, made $40,000?' And you see hands go up and you say, 'Oh my god. This is pretty great,'" De Joy said.

With a sick mother to care for and mounting debts at home, DeJoy took the bait and a bank loan to pay for it.

"I didn't feel greedy when I was in it. I didn't feel that way at all. I was feeling more needy than greedy," DeJoy said.

The promise of financial independence swept across the rugged coast of Maine faster than the incoming tide.

"These are intelligent women, the top of the community, business women. These are people that you looked up to in the community," alleged scam victim Cathy Oleson said.

Oleson also borrowed $5,000 to join a circle. So did Stacey Mitchell.

"I was a few months pregnant when I was introduced to the program and said hey we can use the money to pay for a nursery and everything that goes with it," Mitchell said.

Blinded by personal needs, hundreds of women in Blue Hill and two surrounding counties were taken in by this scam.

"They started getting greedy in our area. They started having parties with hundreds of women. The last party I went to had a hundred and five women," Oleson said.

The gifting circles turned out to be nothing but an illegal pyramid scheme. For the scam to continue it has to grow. Sooner or later, pyramid schemes run out of new recruits. When the bubble burst in Maine, there were few winners.

"I am upset, upset with them, upset with myself. I should have known better," Mitchell said.

Out of embarrassment, most women in this small community kept the losses a secret. But a few are swallowing their pride and seeking restitution as a warning to others.