Former Oregon Governor Sues for Securities Fraud

Neil Goldschmidt, a one-time Oregon governor, has filed a securities fraud lawsuit against an investment company that allegedly sold him the rights to receive military veterans’ disability and retirement payments.

Earlier this month, Goldschmidt, with his wife Diana Snowden, alleged in a lawsuit that he was duped into investing $601,599 to receive "payments arising out of U.S. military disability and retirement contracts." Goldschmidt and Snowden bought nine investment contracts from Arkansas-based Voyager Capital Group, LLC, says an article in the Willamette Week, an Oregon news site. 

In such an operation, investors make an up-front payment to buy contracts giving them the rights to the future pension and disability payments of veterans. In return, these veterans receive a cash payout. Overall, buying other people’s pensions is a controversial practice facing mounting pushback from insurance regulators, notes the article.

However, the Voyager contracts were bogus, claims Goldschmidt’s lawsuit, as the company “failed to register the offer and sale of the Investment Contracts as securities as required by ORS 59.055.” Furthermore, Voyager “failed to disclose and they concealed from Plaintiffs the fact that U.S. military pensions may not be lawfully assigned, anticipated or attached." Goldschmidt and his wife now seek to recover their investment.

Voyager's general counsel declined to comment, claiming he hadn’t seen the lawsuit.

Do you believe you’re a victim of securities fraud or stockbroker fraud? Call Sokolove Law today for a free legal consultation to learn more about how we might be able to help you recover your losses.

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