REFRESH YOUR BROWSER!
ZEEK Q&A AND BIG PHONE CALL BY RECEIVER
One-hour web based conference call for ZeekRewards victims on
Monday, December 17, 2012 at 5:00pm EST.
Event password: rewards
If you are not near a computer and wish to join the call over the phone, please follow the directions below:
US TOLL FREE: +1-855-749-4750
US TOLL: +1-415-655-0001
Toll-free dialing restrictions: http://www.webex.com/pdf/tollfree_restrictions.pdf
Access code: 669 382 018
(This is a call-in number only and those calling in will not have an opportunity to ask questions)
You may join either the video or phone call 60 minutes prior to the start time
WHOOP ANOTHER 12OO SUBP0NEAS?
CLAWBACKS HIT!!! ZEKE RECEIVER ISSUES 1200 SUBPONEAS
The court-appointed receiver in the ZeekRewards case, Kenneth Bell has announced, the court is issuing subpoenas to about 1,200 affiliates of the program that made money. About 100,000 Zeek users have been identified as making money through the program, representing "hundreds of millions of dollars" in additional money that should be returned to the compensation pool. Bell said 1,200 of those affiliates who made the most are being subpoenaed now for information about their financial dealings with Zeek.
Those who receive subpoenas will also be given the opportunity to voluntarily surrender profits, but litigation will follow if necessary, Bell writes. Ed. Note: What status will these folks have in Federal Databases? Some are totally innocent others are serial ponzi schemers. How do the innocent get sorted out from the scammers?
KOREAN ZEEK CREDIT CARD PROCESSOR RIPPING OFF 1,000’S
9/22/12 The Watchdog has gotten a flood of complaints about people who are still getting hit monthly by Zeek’s Korean credit card processor. When you get your credit card bill check for a line “Zeekler.com” SEOUL KR. You get hit for the Zeek $29.95 monthly plus a FOREIGN TRANSACTION FEE of .89 cents for a total of $30.84. The only thing you can do is call your credit card company and dispute the payment! IF YOU DON’T IT IS GOING TO GO ON AND AND ON! Editors Note: We very rarely contact regulators but this was an exception. Don't bet on that call your credit card company!
COUNSELOR BELL RECEIVER REPORT 9/17/12 = CLAWBACKS!
As of today we have secured nearly $300,000,000.00 in Receivership Assets. There may be tens of millions of dollars more of recoverable assets. This process will take time, and I ask your patience while we seek every recoverable dollar for victims of Rex Ventures Group LLC. Among those from whom we intend to recover assets are those affiliates who took more out of Rex Ventures than they put in! ED. NOTE: THIS IS CALLED A CLAWBACK! Many of you received little or nothing from this enterprise. In order to make everyone as whole as possible, those who profited from participating should surrender their gains. , I read in many emails and web postings that some affiliates claim to have spoken to me or the SEC. Counselor Bell: False information is being circulated by these claimants. I have not spoken to any of those claiming to have done so. I will communicate with you through this web site. If I could answer all of the hundreds of thousands of emails and calls from you I would, but obviously I can’t. I also recommend that you consider only what the SEC posts on its web site for its position on this matter.
THE HEAD OF "SUE THE SEC SILLY GANG" CRADDOCK TRYS TO STAY IN THE MEDIA!
Craddock angers Ted Nuyten of businessforhome.org
Craddock sends takedown notice to Ted's ISP, forgetting that it's in Netherlands and does NOT follow US Law! Craddock has done this to other Zeek Critics like KS Chang!
THE "SUE THE SEC SILLY GANG" CHANGES LAW FIRMS
The SNR Denton US LLP law firm representing the Fun Club USA bails out! The Fun Club Gang getting a new law firm. Keeping it secret so law firm will not get buried by calls! Sounds reasonable. No matter which law firm they have this is not going to be an easy haul. Why! If you study Ponzi actions the Secret Service goes in before a shutdown of a Ponzi and starts investigating. The Secret Service is sharp as you can see from the Ad Surf Daily (ASD) case (and others). When the case gets to court the Watchdog bets that the date the Secret Service rolled in and started stacking up evidence was within 2 days after the Bank Examiners blew the whistle meaning around the 1st or 2nd of June. 29 May 2012 - ANNOUNCEMENT - Zeek/Zeek Rewards is currently in the process of moving to a bank that can handle our growing needs and while in transition will be closing our old accounts with both New Bridge Bank and BB & T,” (both FDIC Insured) Zeek said on its news Blog. Ed.note: How many beters do I have?
EXPERTS IN PONZI LAW EXPECT LAWSUIT AGAINST SEC BY FUN CLUB TO BE STAYED
Conference Call With Zeek Receiver Counselor Bell
Counselor Bell The receiver indicated that he had not been provided with copies of the lawsuits, he did give his opinion that, under the order appointing him as receiver, any and all litigation brought against Zeek or its subsidiaries would be stayed and prevented from moving forward. Ultimately, he said, the court would have to provide guidance. CLAWBACKS FROM THOSE THAT MADE MONEY! When asked if he was alluding to the possibility of “clawback” litigation against investors who withdrew more than their initial investment, Mr. Bell stuck to his message that he would pursue “every dollar” from those in wrongful possession of the funds.
NX PAY SOME MAY GET $$ BACK - RECEIVER MAY NOT!
To date NxPay® has been diligently working to reconcile all accounts and related transactions in an effort to determine source of funds for all NxPay® accounts related to Zeek Rewards. We do this so we can clearly identify funds dispersed by Zeek Rewards and funds loaded to the NxPay® but never committed to Zeek Rewards. This has proven to be a tedious process given the vast number of accounts associate to Zeek Rewards and the level of manual reconciliation required. We anticipate disclosing a definitive date as to when the reconciliation will be complete by the end of this week. Once reconciliation has been completed we will send out email notifications confirming the end of this process. This will be followed by instructions on releasing account holder’s funds that were loaded to NxPay® account, but never committed to Zeek Rewards. Any funds that were dispersed or committed to Zeek Rewards or deemed to be payouts by Zeek Rewards to account holders NxPay® wallet will be held in compliance with our directive from the U.S. Securities and Exchange Commission (SEC) and will thus be surrendered to the SEC for redistribution by the appointed Receiver of the SEC investigation.
PREFERRED MERCHANTS ANOTHER $10-18 MILLION!
Preferred Merchants Solutions LLC (PM), was cited an “asset seizure warrant” in a new court filing. PM was a Zeek vendor. The company also says it is in possession of between $10 million and $15 million of “unprocessed checks” linked to Zeek. Moreover, the company has advised a federal judge that there may be an additional $3 million in checks that were not processed.
WHAT? ASK YOUR LOCAL LAWYER ABOUT THIS! SEC LAWSUIT BY FUN CLUB
SNR DENTON (Law Firm) STATEMENT
8/31/12 SNR Denton US LLP represents Fun Club USA and all inquiries about this representation should be directed to Fun Club USA at email@example.com. SNR Denton’s legal representation is limited to Fun Club USA; SNR Denton does not represent and does not have an attorney-client relationship with affiliates of Zeek, Zeek Rewards, Rex Venture Group LLC or with any individual or party that chooses to provide funds to Fun Club USA
(Are contributed funds tax deductible?)
INTERESTING FUN CLUB USA SAYING 5000 SIGNED UP!
COMPETE.COM SAYS NO TRAFFIC But to be fair lets wait 60 days
ZEEK MONEY/REX VENTURE GROUP HAS PROBABLY OVER $80 MILLION CRAWLING OUT OF HIDEY HOLES IN BANKS AND SECURITIES HOLDINGS (Receiver will grab!)
N.C. GROUP SUING FOR MONEY BACK IN STATE COURT MAYBE OTHERS BY NOW
LA. Group suing for money back in LA. Federal Court
There are two different groups above (maybe more) suing Zeek/Rex Ventures trying to find the money! Both of are them sorrowfully slow! By now the SEC Court Appointed Receiver has dibs on the money. So that $80 million plus or minus is beyond their reach. The money will be placed in the receivers restitution fund.
THE “SUE THE SEC” FUN CLUB USA COLLECTING MONEY TO SUE THE FTC IN FEDERAL COURT UPDATE ABOVE 8/31/12
More power to them hasn’t ever worked before! These leaders are telling contributors to the Zeek Defense fund that they (FUN CLUB USA) will be the only ones talking to the Attorney’s. Whoop! That means if you contribute you and you have no communication with your lawyers there is a likelihood of your tax deductions for legal fee’s. Tell the lawyers (not the money collectors) you want a receipt directly from the lawfirm
ZEEK PAY PROCESSOR PUTS OUT WARNING
IT IS ILLEGAL TO DO CHARGE BACK OR CANCEL CHECKS OUCH!
Dear ZeekRewards Accountholder:
Below is a copy of our previous email sent out to all NxPay® accountholders who ever had money transferred to/from their NxPay® account. People are replying to this email asking questions that are already addressed in the email itself so we are resending the email with the addition of a few additional common questions/answers. We do this in the hopes that our accountholders have all the information possible. Please especially make note of the new Q/A regarding bank chargebacks as it is very important that you understand the potential repercussions of doing one.
The important key points to take from this NxPay email:
1.If you initiate a chargeback with your bank, you are in violation of a DIRECT FEDERAL COURT ORDER and exposing yourself to the risk of being criminally prosecuted for fraud. 2.The official claims process has not yet been finalized, but when it becomes available it will be administered by the Temporary Receiver and notNxSystems. 3.We are cooperating with the SEC, US Department of Justice, and the Temporary Receiver in every way possible to make this process as quick and accurate as we can. 4.If you never purchased bids with your money, we are placing special efforts on these funds being accounted for and returned. We cannot guarantee 100% returns, as this decision is made by the Temporary Receiver. 5.There is currently not an ETA on when funds will be released or made available by the Temporary Receiver.
DOWN THE PAGE: TOP ZEEK SCAMMER CONFESSES MAYBE!
BUT FIRST A FINE SUMMARY FROM JEFF BABENER J.D.
And the Leaves that are Green Turn to Brown – MLM Penny Auctions
© Jeffrey Babener 2012
And the leaves that are green turn to brown
And they wither in the wind
And they crumble in your hands….
– Simon and Garfunkel
The recent SEC prosecution and demise of MLM penny auction business, Zeek Rewards, followed by dramatic changes in other copycat MLM penny auction programs, is the latest in a cycle that too often hits the MLM/Network Marketing/Direct Selling industry.
In general, the scenarios of pyramid schemes have roots going back more than 40 years to Dare to Be Great, a program in which individuals were invited to pay $5,000 to attend training seminars, where they were trained to go find others to pay $5,000 to attend the training seminars, and so on. In recent years, modern day pyramid versions of Dare To Be Great are merely variations of the same thing. In the cycle, which often lasts 12 to 24 months, reaching a crescendo in the last 6 months prior to shut down, individuals are hyped to pay large sums of money for worthless products or services, overpriced products or services, or even “air,” intangible rights, licenses, or online service packages. Huge commissions are paid for finding others to do the same. Companies camouflage the pyramid schemes, claiming to be legitimate network marketing companies. Sometimes they “drop” names of so called industry experts, pundits, leaders, or even attorneys, who seem to be complicit in allowing their association to create a veneer of legitimacy.
In the excitement of the “quick money,” prospects “buy into” the illusion… to a point that, when the pyramid collapses or is shut down by an AG, FTC or SEC, they are not sure whether their anger should be directed toward the promoters of the pyramid, and a top cadre of “pied piper,” “heavy hitters” and “industry celebrity cheerleaders with financial interests,” or whether they should accept the promoters defense that the demise is the result of overzealous government regulators.
Unfortunately, the “rationalization” is a delusion, and surprisingly, many individuals, so called MLM Junkies, who live at the periphery of the legitimate direct selling industry, are too quickly pulled in to the next “great opportunity,” and unfortunately, they bring with them many honest, hard working networkers who are caught up in the hysteria. Legitimate companies find some of their best talent lured away – momentarily – until the collapse of the pyramid schemes, hoping that the next scam will not come along for a while.
But they keep coming and the cheerleaders keep cheering. They follow in the recent tradition of Gold Unlimited, SkyBiz, Equinox, Renaissance the Tax People, and most recently the onslaught of the MLM penny auction programs. And in the end, human greed for the quick money may be the answer, or as Shakespeare explained in Julius Caesar, the fault Dear Brutus in is not the stars, but in oursel .
Although Zeek Rewards was closed precipitously by SEC enforcement action and consent settlement, legal history will only be written and adjudicated by the courts as to whether the program should take its place in the pantheon of other notorious programs. That analysis is not the function or purpose of this article.
Apart from some potential lottery issues, can a MLM penny auction service be properly marketed through MLM/network marketing? Yes.
However, the revenue stream for payment of commissions should derive from bid sales to real retail customers, who in turn use the bids. On the other hand, a program fueled by reps, who pay $10,000 for so called sample or giveaway bids, and recruit other reps to do the same, from which the commission pool is paid, is really not the marketing of a service. Rather, it is payment into a pyramid scheme. Ponzi and Pyramid schemes are, by case law recognition, viewed as unregistered passive investment securities offerings that carry deserved civil and criminal penalties for active promoters, whether they are company organizers or merely conflicted cheerleader media publishers with financial interests.
Such schemes really have nothing to do with network marketing, MLM or direct selling. Hiding behind terms of legitimacy is a great disservice to a global direct selling industry that markets in excess of $150 billion in real products and services through 90 million plus direct sellers. Such programs taint the recruiting environment and siphon finance and talent from “real” direct selling companies. In an era when NY Stock Exchange companies, such as Herbalife and NuSkin, face short seller challenges in explaining the legitimate network marketing model, scams and schemes that parade as network marketing merely confuse global markets as to the legality of legitimate network marketing companies. Hiding such schemes behind terms like “freedom,” “entrepreneurial spirit,” “the American dream,” or “free market capitalism” is an unfortunate high jacking of a truly major indigenous American business marketing model.
Unfortunately, too many MLM penny auction models may fit the illegitimacy tests:
1.Pyramid: Large upfront cash investments by distributors, who realistically pay for the right to recruit others to do the same with a hope and prayer to make money off the subsequent recruits. 2.Ponzi: Payment of promised investment rewards to old investors with money from new investors. 3.Securities: Inducing passive investments with the expectation of return arising from the managerial efforts of the promoter or third parties. In addition, pyramids and Ponzi schemes, by definition, are also securities.
In the end, prospects should understand that true network marketing opportunities involve real products and services, real customers, and hard work. Scams and schemes and promises of something for nothing fit the scenario of if it’s too good to be true…
Look for further follow up analysis of MLM penny auctions and other defunct programs at www.mlmlegal.com.
Click here to view current headlines regarding ZeekRewards and links to additional articles on how to identify pyramid schemes.
Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 25 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association. He has lectured and published extensively on direct selling and many of his writings will be found at www.mlmlegal.com, of which he is Editor. He is a graduate of the University of Southern California Law School, where he was an editor of the USC Law Review.
TOP ZEEK REWARDS SCAMMER CONFESSES MAYBE! BS?
Ur Editors Note: This confession floated out yesterday on the web is it true? Who knows since the SEC did not haul the Zeek Rewards Principles into court. So read this with a grain of salt! But I can tell you that this is the way most Ponzi's go on the inside. There is some editing that this is strange - DO NOT ACCEPT AS TRUTH for now
I can’t take it anymore, after reading all these comments I don’t care. I know everything that happened, I was greedy and I was selfish and I am exposing everything I know because I am probably the only affiliate high up that will do so:
I was told I could join as an affiliate in May of 2011, and I signed on with 10K because I was told what nobody else besides us at the top were, and it was the following:
The plans were shown to me clear in writing and I even had access to the actual earnings from the penny auction which was very low. I knew I would make money, because a few affiliates were “planted” in some of the fastest growing MLM states, Florida, Utah and a couple others. Every who was planted put in 10K or got a loan knowing they would get their return. Not only were we guaranteed are money back from Daryl Douglas and Dawn Wright Olivares, we had direct contact information. I myself spoke to Dawn about twice a week and I allegedly knew that this would fall apart in 2 years or just a bit less.
“ZeekRewards is designed as bid purchases but in reality the cash is from new affiliates, there is a design to slow the growth and plans to keep this running for at least 2 years before it crumbles.” I spoke to Dawn on a regular basis that we are nothing more then just a recruitment scheme, luring in people one after the next by telling people about the penny auctions and how much they make which in reality it makes up less than 2% of the profit coming in, but they don’t have to know that.
By December I start using Facebook, Ed note: biggest scam ever on facebook, knowing that I don’t want too many local enemies since I am doing everything out of my small business. I also know that the people in early will get their money back… it’s all timing and a recruiting game now. I added as many friends as possible on Facebook (5,000) being the limit and build raport, anyone who doesnt talk to me I delete and move to the next. I know that the money is there and Zeek continues to grow. That month I become Senior Executive in ZeekRewards, I have my 6 diamonds and a few gold and silver affiliates. Nobody has put big money in yet other then $500 here and 1,000 there.
ZeekRewards Backoffice Top Affiliates get a call from Daryl Douglas, his account is nearing 400,000 VIP, he tells me how he recruits and his personal success.. I know I need to push the recruiting more. I start working harder at Zeek, but by this point and time one of the affiliates I recruited in November of 2011 is a recruiter! He pulls in doctors, lawyers and more even unapproved spreadsheets are going around showing what you will make. The Zeek business grows, but remember only a few planted top affiliates know the true business model, we use our backoffices to lure people in by impreessing them with the large amounts we are making. We know not to tell anyone else because when it Zeek Rewards crashes it will kick back up to us, we continue presenting the “penny auction” as usual.
At this time I almost have 500 people in my Matrix and my account is over 100,000 VIP. I pulled out just over 10K and show people proof of checks occasionally to pull them in. It works. I start hosting group meetings out of my business getting the word out, the group grows every week and so does my Zeek Rewards account! I know that the bigger the VIP $$$$, the easier to lure people in and the more my cashout option will go up higher. By this time ZeekRewardsNews which is the official blog and news site ZeekRewards is launched keeps affiliates up to date as well as their Facebook page. The news site is only used to build a trust relationship with readers, nothing more than just to lure people in. Updates range from when the site will be down, maintenance, and upcoming details. Routine stuff to look good to prospects
May 2012: This marks the date Zeek changes banks, the banks are offshore in South Korea. I have a personal call with Dawn and she tells me how fast the business is growing, gives me a few numbers of what we are making over 3 million per day all affiliate money while the actual penny auction site is only bringing in about 10-15k per day. .Paper checks are no longer being sent out by Zeek, simply because of using off-shore bank accounts, Zeek hides the mess by using ewallets NXpay, AlertPay and SolidTrust. Zeek hopes that some people wont know how to take the money from their account leaving more in for us we we cashout. Zeek happily allowed anyone who requested money to take money out knowing that checks and proof would entice more people to join. This worked just as was planned by Dawn, Daryl and Paul.
End of May 2012, I get a call from Paul surprisingly, he says that the payouts and VIP accounts are growing too fast and he doesnt want to scare people away. He manages the Retail Profit Pool and continues to average it at 1.5% so others don’t pull their money out leaving more for all of us.
To obfusicate the process Paul uses about 1.9 to 2% on Thursdays, 1.4% Fridays and weekends are about 0.8%. I am told by Paul as well as Dawn later in call to draw out money, but not all of it. Dawn: “Don’t draw all of your money out, it will be too suspicious for those who see your account and its under 10,000 VIP or really low” We don’t want people catching on.
My VIP at the time was over 500,000… I drew out over $35,000 per week in increments. It’s now the mid of June, I get call from Dawn telling me that the plugs will be pulled on the company in August and to take out what I need. I set my account to 0 taking out $60,000 here, $40,000 there totaling a little over $350,000 in the period of just 60 days
I’m can't tell anybody on my team, even the guy below me who has 2 accounts for him and his wife that total nearly 500,000 points. I give hints and recommend he take some money out for a vacation, he pulls out a little over $50,000. I know that by exposing the scheme it will only be bad for me at this point and time, there is no point. I tell people on the team to 0 out their accounts to move over to Bids That Give (this was a hint) but few listened.
We are now in August, when people come and ask to see my account, even after pulling out over $350,000 recently my VIP is at $474,000. The final meeting I have people want to buy bids, I know I could refuse seeing that we are coming to an end, but that would only cause suspicion if I refused.
It’sTuesday August 14, just a few days before Zeek shuts down its site. I get a final call from Dawn telling me thank you, we are walking a way before we can't continue paying out anymore. We talk and I know it’s coming to an end. Dawn asks me where my VIP on the account is making sure I have a good amount in there to cover the trail, in the even I didn’t they could manually input the numbers for me. I did leave close to 500,000 in my account. In Zeek total since I started I have taken out close to $800,000 being the top guy in my state. All the updates on ZeekRewards News about prepaid cards, ZeekBates and other new stuff coming out was just a shame to funnel in more money and keep the money in the affiliates accounts. What I did was dishonest, greedy, hurtful and more. Why am I admitting this? Because I am ashamed, it doesn’t matter anymore. I created many debts as only a few people on my team pulled out what they initially made. It’s too late to come out and knowingly admit my name now…
I even told people that with the new updates the VIP earnings would double from the revenue, I lied. I did many wrong things,and now I admit them. You see, this was organized and disguised so well, that thousands of people got hurt. Call me an idiot, tell me to burn in hell, but I am the only affiliate in the upline with connections to Dawn, Daryl and Paul who will share my story- my story is the truth and I believe people should know for the sake of their own good.
Zeek was nothing more than a hurtful scheme, buying fake customers and more. Proof of Backoffice: http://i.imgur.com/hvdUv.jpg
This I can publicly display…. This is where my account was before Zeek was shutdown