The 7 Rings of Wealth gifting scheme, launched in February 2017, operates a seven-tier matrix model where participants pay escalating sums up to $2,500 to their recruiters. This operation positions itself as an "innovation" within a community known as "The Nation," which is tied to CollaborateUSA, LLC. No identifiable individuals are listed as owners or operators of 7 Rings of Wealth.

The website domain for 7 Rings of Wealth was registered privately on February 15, 2017. Its footer references "CollaborateUSA, LLC," which maintains a separate website. This companion site describes "the Nation" as a "Collaborative Commonwealth," framing it as a confederacy of independent persons and businesses where each member holds a "sovereign" voice and vote. Members pay a one-time $240 share fee to gain ownership in Collaborate CoOp, allowing them to vote for an annually rotating Board of Directors. This framework aligns with common sovereign citizen ideologies, which assert individual immunity from government authority.

Participants in 7 Rings of Wealth purchase no retailable products or services. The only offering is membership itself, which grants access to a series of webinars. These webinars cover topics such as assets, health, leisure, and income. However, the company does not disclose who created these materials. The content within these webinars often serves as an indoctrination into sovereign citizen concepts, disguised as business or personal development training.

The financial structure relies on a 2x7 matrix system. An affiliate sits at the matrix's apex, with two positions directly beneath them forming the first level. Each subsequent level doubles in size, creating four positions at level two, eight at level three, and so on, up to 128 positions at level seven. New participants join by gifting $5 to the person who recruited them, securing their matrix position. They then receive two $5 payments from the first two people placed beneath them. From these earnings, they keep $5 and gift $5 to unlock access to level two.

Gifted amounts increase significantly at each subsequent level. To progress, participants must pay:
Level 1: Gift $5, receive two $5 payments.
Level 2: Gift $5, receive four $5 payments.
Level 3: Gift $10, receive eight $10 payments.
Level 4: Gift $40, receive sixteen $40 payments.
Level 5: Gift $100, receive thirty-two $100 payments.
Level 6: Gift $500, receive sixty-four $500 payments.
Level 7: Gift $2,500, receive 128 $2,500 payments.

The operators of 7 Rings of Wealth skim substantial sums from these transactions. The scheme takes $160 from level 4 payments, $300 from level 5, and $5,500 from level 6. Beyond these one-time gifting payments, members also pay a $5 monthly fee, directed to their recruiter.

The scheme's website attempts to reframe its operations, stating it is not seeking contributions but "offering an amazing opportunity through developing your own micro-enterprise." Yet, the requirement for monthly "gifting payments" contradicts this claim. The term "gifting payments" itself is absent from the site; instead, these transactions are labeled "patronage refunds." This linguistic choice serves as a deliberate misdirection to obscure the true nature of the payments.

Without new gifting contributions from recruited affiliates, the entire structure collapses. The scheme sells no products or services to retail customers. All revenue originates from affiliates, specifically through the escalating payments and the skimmed funds taken at matrix levels 4 through 6. When recruitment inevitably slows, new funds stop flowing into the system. Later affiliates then find themselves unable to recoup their initial and ongoing payments.

This design ensures most participants lose money. The $5 monthly fee forces affiliates to recruit at least two new members within roughly one month to avoid a net loss. Federal and state regulators commonly classify such gifting circles as illegal pyramid schemes. The business model is a textbook example of financial fraud, where calling it "crowdfunding" or payments "patronage refunds" does not alter its fundamental illegal structure. The system is designed to guarantee the majority of participants lose money for those at the top to profit.