Breaking Zeek Rewards News: Rex Venture Group Closes Doors Due To Escalated Investigation

By now you have hear the news or read the article that Rex Venture Group aka Zeek Rewards and Zeekler Penny Auction has shut their doors for the week. Source The Dispatch. Well In the following video I share what I know. I have spoken to Greg Caldwell the acting COO, and he referred me to the websites for the most current info.

Later today I should be talking to Greg Caldwell and will get some additional information. Based on what I do know at this point…

This escalated investigation will have an effect on all MLM Penny Auctions currently in business or in pre-launch!

Spread The News!

82 thoughts on “Breaking Zeek Rewards News: Rex Venture Group Closes Doors Due To Escalated Investigation”

  1. Pingback: BREAKING: Zeek Rewards pull plug on Ponzi scheme
  2. It's a pitty that Zeek got to this position… Now we understand that we need to work for money and we need to put some effort in it…
    How can we recover for the loss of income… http://nemrodkedem.com/zeek-recovery/
    My recent post Make Money Online – Is It Possible?

  3. It is interesting that the SEC says they shut down Zeek Rewards because it was on the verge of collapse, but they also stated they shut it down because of the tremendous amount of money ZR had on hand ($225 million cash reserve + $162 million monthly income), which was enough to pay everyone back their original investment. How do those 2 things co-exist? Either it was broke and on the verge of collapse or it was so overwhelmingly profitable that even though they had already paid out $375 million they still had enough cash reserve to give everyone back their original investment… The facts simply don't support the conclusion.

    One other thing, the news articles report that Paul supposedly "siphoned" $4 million, but yet the SEC came in and shut ZR down while charging a $4 million penalty – basically the SEC is the one who has "siphoned" $4 million! I think the "S" "E" "C" should stand for the Security Exchange Crooks! If they were really concerned about the affiliates, the SEC should give the $4 million penalty to the affiliates. Who exactly is siphoning money now? Moreover, I do not believe that Paul B. was "siphoning" $4 million, but rather being paid for his work in Zeek! He did not work for free and he should be expected to be paid.

  4. @Richard,

    I really can't answer all your questions. Since your upline did everything, I am not sure if that will matter of not.

    As for the rest of it… The SEC should very soon put new information up on ZeekRewards and Zeekler to help everyone understand the process. They may also place stuff on Zeek Rewards News, although it may be owned by a separate organization, and nothing may be added there, not sure.

  5. Troy

    I have only been an affiliate for about 2 weeks, I only invested 4k. My question is if I purchased bids through my sponsor ( handed money and they uploaded all of my VIPpoints somehow) how will I receive my refund? Will there be checks mailed or will they contact us via email. I’m not stressed I knew what I was getting into im just curious about how I will be contacted. Thanks for the info.

  6. Pingback: Zeek Rewards Investigation – Zeek Rewards Closed Pending Investigation - Empower Network | Easy Business Today
  7. @Dawn,

    Thank you for your kind words.

    I have seen and read many cases where the SEC gets involved. But I have never seen one where one day the AG admits to issuing a CID and the next the feds have moved in and cut a deal with the purported mastermind of a $600 million dollar ponzi without a fight!

    With all the money accounted for and $225 million still in the bank, I do not have a concern with folks getting most if mot all of their original purchase money back. There may be some of the "Founding Affiliates" (I just found this out) who help to fund the compensation structure who may fall under the clawback rule. SInce I am not a ponzi expert I am still learning some of the terms. There is also a chance the regulators will go after any affiliate who the company sanctioned or terminated for promoting Zeek Rewards as a ponzi.

    What we may not see is the foreign affiliates getting paid very fast or at all. I am not sure how that works, and hopefully some of the critics like K.Chang, Oz, and others can shed some light on this situation.

    I know this caught almost everyone at the Lexington location off guard. Just last week some of the executives and marketing consultants were in Nashville working out the final details on the convention. Then by Tuesday the news went public on the AG investigation "which I had said would take place before much longer), then two days later… well we see what happened.

    I plan on a new editorial on Monday or Tuesday .

  8. @RickW,

    If I read the complaint right, the regulators see Bids as unregistered securities… It seems this could be all bids where a compensation plan is concerned.

  9. Pingback: Zeek Rewards !! How to get to $3K a month, starting as a free member ! - Page 26
  10. One of my good friends sent me a text when Zeek closed their doors, he was pulling out $30K a week… pretty tough pill to swallow, however I'm not going to be one to say anything negative about this situation. Like any concept which is 'new' like this, they are going to come under the eye of the government or regulatory bodies at some point in time, just like Amway did and many other companies have in the past.

    Now whether or not that makes this type of business model legal or within regulation, I don't know, only time will tell at this point. I think some of the issues which will come out of this are whether or not they are selling unregistered securities or acting as a bank without a charter etc, those are going to be tough issues to deal with and with ponzi and pyramid being in the mix… they have a lot to deal with.

    For all those involved, I hope that this program is proven to be legitimate and everyone can go back to business as usual.

    I wonder what this means for Bidify and the other penny auction MLM's?

  11. Hi Troy,

    Thank you so much for what you do. I appreciate your videos and being up front, regardless of what the naysayers say. Anyway, have you ever seen an SEC action like this, which includes paying back investors? I’m very concerned about reimbursement and how that would generally work. I would think to the fair way to do it would be to take the original amount invested, minus any payouts that have already been made. What’s your educated guess on how this may work its way out?

    Thanks!

    Dawn

  12. @Logic,

    Thank you for sharing… Please explain where I ever skirted Logic or common sense?

    I did compute the numbers and I made it very clear customer revenue was needed, more auctions were needed, and I started yelling about that from day one. And from April on I was very clear in emails, conference calls and in person what was needed to the powers to be at Rex.

    At least I didn't create the compensation plan or take a top position earning $40K a month. Feel free to hit me all you want., but at least make sure you get all the facts right sport.

    I never justify my positions I just use my real name so I can take fully responsibility.

    ROFLOL… You bet I will promote ViTel as my son's business. And any other business my family is involved. But I will do it above board, not as a hidden affiliate.

    Which industry are you referring?

  13. @Dave,

    Interesting, why would I do that? I love my shirts, and why would I have orange jumpers? Exactly what did I report on that was not factual? Please share with the world from day one, exactly what I reported that was not based on current information… All the way to the end?

  14. Troy. Please let me know when your next video with go public, I can’t wait to see the fluff you throw out to try and make it look like you had nothing involved in this?

  15. I will tell you why you can’t open, because it will make him look like a bigger fool then he already does. Troy get ready to exchange those gauldy 20 year old kid club shirts for state issues orange jumpers!

  16. Good point Mr. Chris. As you all can see, Mr. Troy is responding in the same manner as when
    He was responding to all the red flags. Skirting the logic and common sense. Can all of us believe that Mr. Troy didn’t compute the Numbers? Just the numbers alone! Forget what other issues critics were trying to point out. You don’t have to do anything Mr. Troy to justify what you were promoting. The end result just shows the people what you are about. As we all know that this will be forgotten in a short time and people like you will move on to the next thing. As you were promoting your son’s Vital network in the same manner as zeek. I was hoping you could do the sensible thing and start to work on the victims side only. You can stop the madness of the greedy industry.

  17. @Troy

    I have an off-topic question, about the new comment system (it’s active from time to time). It’s not active now, so my description will be from memory.

    It requires a “log in”, or a “sign up” plus a “log in”. So I tested the “sign up”, assuming I had to re-register into a new system. It led to “Username is alreday registered in the database”. So far it’s OK.

    Then I tried to “log in”, using the same username, but left the password BLANK. It led to ERROR. So far it’s OK, it clearly want some input from me there.

    THE QUESTION:
    What kind of password does it want?
    * email address?
    * or does it want me to create a NEW password? I don’t have any OLD passwords here.

    I would normally have found out of it by myself, putting in my email address on the next attempt, and creating a new password if the first method failed, and THEN asked if both methods failed.

  18. @Nebulusx1,

    You keep promoting what you know are Ponzi schemes. You are on all of the Ponzi forums pushing Zeek.

    I hope you didn’t spend all of your Zeek earnings as the claw backs will happen, even to those outside the U.S.

  19. Rebecca in NC,

    It is my understanding that those who have bought bids last will get their money (or a portion of) first. I am not sure this will include subscriptions etc., because the SEC numbers are not totally clear in some areas.

    I will be addressing these issues first of the week.

  20. Troy,

    Thank you very much for the update from last night that indicates the Zeek affiliates will receive full refunds for their out of pocket bid purchases, unless they have already received payments that cover those costs. We pray that that happens.

    This bit of news is not yet posted on the SEC website so we will hold off passing the information to our affiliate team members until it’s official just to be safe.

    With appreciation,

    Jack and Nancy Allen
    Buffalo, New York

  21. I know it’s hard to invest your valuable time & money to build up a company like Zeek Rewards. Now you feel like where do I go from here? Well when your car stalls on the highway you get in a cab and keep on moving..TO ALL ZEEK REWARDS AFFILIATES VITEL IS OFFERING YOU A 30 DAY FREE MEMBERSHIP..CALL ME DIRECTLY 888-670-0857

  22. @Chris,

    As always thank you for providing solid insight. Let me look at what you state and discus it.

    1. The words “proudly” and ” “negativity” are not two words one would use in the same sentence, and is sure not anything I would claim or take credit for. I did state that due to negativity, I did side on issues with Zeek. But, remember I am also very clear, negative information is far different then critic information. Not one time have I not publicly and even privately addressed and sometimes even supported critics on issues.

    And i think it is very professional, and even responsible for any reporter to do their best to keep the conversation balanced with all the information. Because I do my best to show a positive view vs. just a negative or critical view, doesn’t change the facts. It just provides additional opinion.

    2. I fully understand you and others “saw” a ponzi. But as an advocate against ponzi’s and someone I fully respect maybe you can help me with a few questions. I will send them to you privately first, as I have Oz and others because I do have some major concerns.

    3. I had Erik “e” ask me those same questions. It is those people who may now lose their home that I also met, and have received plenty of emails from. It sickens me to see anyone go through financial or emotional anguish. But nothing I can say in a small comment will really address that issue.

    4. It does not sound like the authorities are going to do much, outside of liquidating the company. This does bother me, because I have turned in several major illegal activities to folks who promoted Zeek Rewards as a HYIPs/PONZI from day one. We have discuss this before and are on the same page about folks who knowing lead people down the wrong path. Knowing promoting any business outside of compliance and illegally is far different than promoting what you believe is a legit business model.

    5. Critics are far different than negative people and you know that. So lets not play games on my stance on that one. I see you as a critic, not a negative person and you and I always engage in solid conversation that helps this community fully understand serious issues.

    6. By the way, I did not put a positive spin on any of the major red flag Chris. I addressed those factually and well within the context.

    One reason I have never run a blog community where my name is hidden is because I will gladly face critics and regulators for all I write and say. When red flags are presented we addressed them. looked at all the areas of concerns and I provided facts (as they were provided to me) and at times subjective commentary and opinions of what might be the issues.

    I’ll gladly take the hits from you and others, and you have no clue the emails and private messages I have received… yes some sleepless nights.

    Come the first of the week I will once again address some major issues that neither you or any of the critics seem to be addressing which should cause even you concern. (see my email).

    Living An Epic Adventure,
    Troy

  23. Quite frankly, any thinking person had to know this was simply not sustainable.

    Come on, 1.5% per day compounding?

    But the real problem is you would have thought if this was ethical at all, the percentages would have started to go down.

    But NO, that would have slowed growth which would have collapsed it even quicker.

    So, looks as though Paul Burks was “arbitrarily” making up the daily profit pool percentages.

    After well over a year, I can tell you out of the hundreds of zeekler auction customers I had, I can remember very few actually buying bids after receiving free ones.

    That right there combined with receiving 5 & 10% commissions on 1st and 2nd level VIP profit pool bid repurchases makes the comp plan even more unsustainable.

    Likely a good thing the plug was pulled when it was. No sense running over a cliff when you see it coming.

    Good luck to all, and thanks for the updates Troy.

    Zac

  24. Troy,

    Obviously, what most of us, who joined recently, are extremely concerned about is how the process to recoup our money will occur. How does this work from a timeline perspective? Do we file paperwork? Do they contact us? Is their an SEC contact we can reach out to?

    Thank you for any insight.

  25. Wow, I wish all my upline felt the same way. You are a good man, and I needed some uplifting thoughts today.
    Thank you for taking the time to write them down.

    I’m one of those that put in the full amount just last month, and was so excited about the prospect that I convinced a few friends to come in with me. I’d like to get my money back too, but first my friends need to recover their losses.

    Yep, I knew too, but somehow got convinced by the BS. It’s a sad day.

  26. Very sad to here this new and how so many are effected as I was. Fortunately I had a back-up plan in case such a thing occurred.

    Don’t give up faith on the industry there still are reputable companies out there that can make a difference in you ilfe.

    There is an option if you are asking what’s next. Please watch this http://bit.ly/P5y6Lz

  27. Hi Troy, Just found this SEC complaint Against Rex Venture and Zeek Rewards. It doesn’t look good if is the reason why they are shut down. Please any info you get lets know. Thanks Scott Giacolett. http://www.sec.gov/litigation/complaints/2012/comp-pr2012-160.pdf

  28. I have to agree with you. Your words are well spoken.

    I have seen pure vitriol of hatred and “I told you so, won’t you join my company?” Are you kidding me?

    To those people, here is my message – I would never have anything to do with you because you have just shown what your people mean to you – another recruit, another $$$ in my pocket. To hell with whatever just happened to you but you must’ve been just plain stupid.

    I may have made a mistake but I am a risk taker. Some you win and some you don’t. However, the next risk I take will definitely not be with anyone who didn’t have compassion and sympathy for those who lost. Who’s stupid now?

  29. Humanity continues to disappoint me.

    If you still want to claim that Paul Burks is a decent human being after reading the facts and numbers in the SEC filing, I think I’m just going to have to give up hope that any so called leader in MLM gives one bit of a crap about people.

    You proudly proclaim in your video that you sometimes sided with Zeek just because of all the “negativity”.

    How professional was that? And how was that looking out for the MLM community?

    How many poor saps did MLM heavy hitters like Tissa Godavitarne, Brian Bear, and others drag into what so many of the “negative” people so easily recognized as a ponzi.

    You tell the heartwarming story of the lady who can now see her husband because Zeek money allowed her to get eye surgery.

    And then the wonderful follow up story about the man who could let his church have his services for free because he was making enough money from Zeek to no longer need their funds to get by.

    Perhaps you will be willing to do the follow up story on people who now may lose their homes and be out in the street because their money went to pay for the lady’s eye surgery.

    How about if the authorities decide that the lady needs to pay that money back. How happy will she be then and what kind of hardship will it create for her.

    I suppose that lucky man will now have to ask his church to now start paying him for his services again.

    Or even worse, if he is another clawback candidate, perhaps he won’t even be able to afford to work at his church because he needs another job to pay off his Zeek blessings.

    Even if you are struggling to understand what the numbers mean in that SEC filing, the fact that

    “Burks unilaterally and arbitrarily determines the daily dividend rate so that it averages approximately 1.5% per day, giving investors the false impression that
    the business is profitable”

    should show you that he was a liar and a con man.

    The world isn’t all puppy dogs and rainbows Troy.

    You may not like so-called “negative” people /critics, but your attempt at putting a positive spin on just about every red flag they mentioned to you has done far more damage to far more people than any of the “negative” people did.

    Oh well, off I go to read more heart wrenching stories that your positive thinking helped create.

  30. My heart really goes out to all of the Zeek affiliates who have to go thru this extremely trying situation. We all want to feel a sense of security when it comes to our home based businesses and to have that feeling snatched away has to be devastating. I have a life preserver for any Zeek rep who feels like they are drowning. I am offering a light at the end of the tunnel for you. You can find me at http://www.homebychoice.info and I will be so happy to help you to get back onto solid ground. Vitel has opened the door to all Zeek affiliates and I mean Wide Open. You can come in for free and bring your entire downline in also. We are calling you home so come on in at http://www.homebychoice.info I will see you soon

  31. @Dave,

    I can assure you it will ask some very hard questions… Questions that so far no one seems to be asking!

    And hey my head is more round the egg shape.

  32. Troy,

    I don't know why your newest post won't load but I'd like to see it because this is where my sentiments lie. I have so many mixed emotions right now like many of us. I've read the SEC complaint filed with the court and it's as ugly as it gets. There are a lot of really smart people who bought into this one. Sadder, there are a lot of people who couldn't afford to lose not only money, but HOPE, that bought into it. We all need to take a long look in the mirror and try to regain our self-respect and confidence.

    The kicking of former Zeek affiliates, no the mutilating, by those within network marketing is the final straw. I'm a smart guy, although wounded and feeling stupid. I'm a doctor and own and manage a high quality group practice. I've invested well owning income producing real estate, done land development, and fixed up old houses to sell. I do volunteer healthcare in other countries, and serve my community along with my family. I swore I'd stay out of network marketing, and I'm now reminded why.

    Failing at discernment with Zeek and becoming narrow-minded to the reality of what was happening was my biggest flaw. I criticized the critics, who were right and I will admit it. They had expertise I didn't. That's life, and the pursuit of wisdom is a process of success and failure. Failure's where you learn the most but only when you admit it and look in the mirror and within yourself.

    But being bashed, called F—-ing stupid, idiotic, and far worse openly within the networking community has shown me it's not people I want to be associated with. I thought it was a community but it turns out it's a group of mean-spirited small-minded people who are so territorial in "their" companies that it's like a bunch of cults one against the other. No compassion, no empathy, no concern. Just the ugliest of human nature pouring out. with a superficiality beyond words unless you're one of "them." I'm thick-skinned, I don't care for myself because I make my own way in life. But I do choose who I associate with because we become our influences. This whole debacle has soured me from ever stepping into the networking arena again, and it's an attitude I've observed from afar but never realized how it could be unleashed. I realize I'm being harsh and generalizing, Troy. I also think I'm not far off the mark, and it's how people like me who are new to the community perceive it that really matters if it's going to gain respect and grow. My parents were shunned years ago when they stopped running their Amway business due to ethical problems in their group and friends became condescending hypocrites overnight. so I've seen this script before.

    The bottom line is the combination effect is devastating to the networking community. The failure of Zeek on such a rapid scale along with the reaction of so many in the networking "family" is simply disgusting. It's not a family I want to be a part of and I wish the other 98% that struggle to really make anything with it all the best.. I operate within many other groups in my life, and never do I experience what I've seen in the past few days. We don't coddle each other, but we operate with certain baseline values of respect and decency that are never broken.

    Lastly on a practical note, do you have any insight to the claw-back process? I made money here, and I have no intention of spending it for legal and ethical reasons. If we're allowed to keep profits, which I doubt, it will fund my medical volunteer trips. Otherwise, I will gladly return it so those less fortunate than me can have a little less pain. I've already offered some to my downline friends who I ache for more than myself for sure as there lives really needed this. But I thought I should wait and see what the process becomes. I have an upline member I know who has spent $20,000/month for several months and I know it's gone. This could be really ugly for him, correct? Any insight here would be most appreciated.

  33. I can’t wait to see your next video Troy! Hurry up, I’m sure there’s a lot of people who can’t wait to hear what your egg head has to say!

  34. Candice, you are an idiot and I believe if you lived in Alaska I could sell you ice. Time to do like the rest of America and get a real job!

  35. @Ronm69,

    From past cases, the newest money in, gets paid out first. I would assume it will be the same here.

  36. Troy, you may not have the answer to this, but from your knowledge base do you think we will still get funds that were already requested as payments to nxpay and or funds that were set aside in our cash available? Also, will these refunds of amounts that people bought bids with be handled internally or will these people need to file some sort of claim for those amounts? You stated that those people that had not taken any commissions out will be the ones most likely to receive refunds, just curious if they (the receiver assigned) will be able to determine from records who is to get refunds and how much.

  37. @Tom,

    I learned last night late, that a deal had been reached. I was not allowed to mention anything until all the paperwork was signed and the feds released the info publicly. Unlike ASD or other ponzi's there are no criminal charges. Paul will pay a $ 4 million dollar fine (less than 1% of the amount the feds state was taken in in revenue. They will control $235 million in cash, plus assets.

    Paul will be allowed to take care of his ailing wife and those who have not yet pulled down their original bid purchases, will be sent a refund by the receiver of the company.

    The only part I don't fully understand is that if the regulators all feel this is a ponzi and/or pyramid (which I can see far better than a ponzi) then why are there no criminal charges?

    In the way this has taken place, there will be no due process under the law for a trail where the regulators will be sharing all the info. I think this is bad for everyone because unlike ASD we will never know all the math or anything.

    I still believe there was not criminal intent by anyone, but I would like to have know the real math behind this who deal.

    In what is happening here, I do believe this can and may happen to all other penny auctions with a compensation plan.

  38. @Averagechuck,

    All that will be handled and refunded will be original funds you used to purchase your bids and subscriptions. If you have already received more than you purchased, then you are done.

  39. If the company does in fact liquidate, what about affiliates like myself that have been building up points for a year now. Im on 100% repurchase. What happens to my current 20,000 VIP Points? Do those get liquidated? What do get in exchange? Anything?

  40. hey troy thanks for letting us know whats going on! hey fellow Zeekers here is the answer to the most popular question! I'm A Zeeker what do i do Now? http://youtu.be/g_8M1ZSAB0E there is a safe haven for you! for free! WATCH IT NOW!

  41. Hi Troy. You’re mentioning things I haven’t heard yet that are VERY concerning. When did we learn that Feds are involved? I thought this was state level inquiry. Also, when did “liquidation” enter the equation? Sick family member or not, this man has a moral obligation to thousands to pass on the torch to someone else. If all this has been a one man project to enrich himself, then I’m appalled. CEOs with sick and dying family members don’t “liquidate” and upend the lives of their company members. In fact, we rarely hear of such struggles until after the passing of the loved one. I don’t mean to sound cold-hearted, but these are realities that the Zeek people have been prepared for. That all said, does “liquidation” mean I get my money back from purchasing thousands in sample bids to build my business? I’ve not made one dime since I’ve only been in this a short time. I know one thing “liquidation” doesn’t mean — getting my credibility back by telling others what “people of integrity” the leaders of Zeek are. So sad. One last point — why all the “I love Zeek” communiques to the authorities when, in the end, Mr. Burkes is just going to bale anyway? CAN’T BELIEVE IT’S COME TO THIS!

  42. @Doerf16,

    Great question. Since the regulators are involved, in past situation when the company decides to liquidate, the way it has worked is somewhat different because we have not seen a Zeek before. But, I would say, the following is a good probability.

    1. All those who have sent in check in the last week, would get those checks back in the mail (sent certified).

    2. Those who were still inside the 90-days where they could not convert points to "cash available" would be refunded for the purchase of the bids, they now can't use.

    3. Then the accountants will start looking at everyone over the 90-day mark and would look to see how much they have already converted to "cash available" and would pay them back the difference.

    Now, from what information I have gathered from outside sources, it seems that the company has plenty of cash and assets to handle this task.

  43. @Jmw4x,

    Yes, it does seem RVG closed their doors voluntarily. I can see Greg Caldwell doing this to make sure that until the regulators have explained if there are any issues, that he does not allow RVG to go in the wrong direction.

  44. If the company decides to liquidate….what does this mean to those that purchased bids and have yet to get a dime?

  45. Can you comment on this?

    I WOULD NOT NORMALLY DO THIS BUT THIS IS IMPORTANT TO A LOT OF PEOPLE

    Dr Lenny just got off the phone from a reliable source from the company and it's good news! PLEASE PASS THIS ON!!!

    The person he spoke with works with Paul Burkes and Dawn inside the company. To keep people from trying to contact him, we were asked not to give out his name.
    But I assure you, Dr Lenny knows him well and he has access to what is really going on.

    Zeek voluntarily closed their doors to be ahead of the curve!!! They saw the signs of the possibility of the government taking action, so they proactively decided to shut down and lawyer up to be steps ahead of the game!! This is great news!

    The company has all their lawyers and documents ready to proactively address all complaints and issues the A.G. will have for them.

    One of our members called North Carolina and was told they never shut down the company, so that proves this is true: Zeek didn't have to shut down. They decided to do this themselves to "NIP this in the Bud." Zeek is prepared!

    So stop looking at all the rumors and speculations. These are the facts. It's time to relax and wait for news probably next week directly from the company. Of course if I hear anything further that affects us, I will email you.

    Thank you for keeping the phone lines free.

    Because of this situation, Dr Lenny and I will not have our Sat call and next week's webinars on Tues and Thurs are on hold until further notice.

    Best to you always,
    Candice

  46. @SelfmadeUSA2012,

    Well there has sure been enough of the negative crap. I expect the critics to take shots at everyone. But sadly some great leaders inside network marketing have taken some nasty shots at he affiliates themselves. People for the most part who are chasing their dreams and freedom like everyone else in network marketing.

    I am not sure which way things will go, since we are early in the the investigation. But, since there doesn;t seem to be any criminal activity yet, it is a good sign.

    However, with the Zeekler site down, I also believe the founder's of Rex Venture Group, may have given the management team the go ahead to ask the regulators to not only investigate but help in the liquidation of the company.

    It is common knowledge that Paul Burk's wife has been very ill, and he has not been in the office for around six months or so, for the most part. I doubt if it he will be willing to fight some huge drawn out battle.

  47. @gregster555,

    Well with the website being maxed I have been slow in getting everything handled.

    I do feel it was a voluntary move, and that when the SEC and Treasury were asked to take over, Greg Caldwell made the best move in shutting everything down. Like you I am waiting to hear some real facts.

  48. @joesesoto15,

    I am not sure if worry is the right word. Concerned, yes. Anytime federal regulators are asked to investigate, then it is a concern. The positive news is that so far this doesn't look like a criminal investigation. As long as it stays civil, then we know there is no criminal malice that has been uncovered and now we wait.

    I would guess that once the investigation is over, Paul will decide if he wants to reopen or just liquidate the company. That might even be something he asked the regulators to do.

  49. BrotherMabe,

    From what I have read from all the articles, it seems that the investigation as been escalated to determine where all the funds came from. I would also guess that there is more international funds that US funds which have come into the company and each agency is making sure there is nothing illegal which has taken place.

    I would guess that the company will not open Monday, or any time soon. The regulators will want to make a determination of everything. If they determine nothing illegal has happened, but that there are some areas which need to be fixed, then those will be fixed and the doors reopened.

    However, if they determine there is no way to make the system work without folks still thinking they are investing in the company, then they could very well determine that a receiver needs to be appointed and liquidation will take place.

    No telling how long or when this might happen.

  50. Troy, I am a Zeek Rewards Advertising Affiliate here in Lexington, NC.
    Thanks for all of your updates and advice concerning our company.
    Do you honestly think Zeek will be opening on Monday or at least sometime soon?
    That is what I am hearing from other sponsors (up-line).
    If not, what really happens to the money?
    Also, if Zeek comes through this will the company be stronger?

  51. Hi troy, should we zeek affilates be worried about this or just wait for further notice, all my downline is contacting me for information and i got none. Thanks

  52. Troy, any luck reaching Greg Caldwell? My wife and I are involved in Zeek (relatively recently) and have some friends we got involved. Would sure like to provide some concrete answers for them.

    Thanks for your levelheaded work on this.

    Chris

  53. Troy,

    We are counting on you to help us get a few real answers. This news release that just came out is more disconcerting, with the AG rep stating they didn't close Zeekler down. If they've done it voluntarily, where's the information about the status. This starts to look like a con job pretty quickly when no one can be reached and no one responds for even a basic statement. You have the best connections out there, so please help us learn more as quickly as possible.
    http://www.the-dispatch.com/article/20120817/NEWS

  54. Troy,
    As usual when negative press is in the air everybody and their brother comes out of the woodwork with their Monday morning quarterbacking. I have been in this industry for over 20 years and love your blog as you dont REACT you VERIFY and report. People should learn from this practice. Speculation is a dangerous thing. The only thing more dangerous is ignorance. Unfortunately the two are usually one in the same. These things usually come down to WHO YOU KNOW and HOW MUCH DOUGH! People are fascinating. Keep up the good work.

  55. @Chris,

    Zeek traffic can be a two edged sword, when you are not focused on traffic but on content. I guess I should be like most bloggers and focus on traffic issues. 🙂

    The Hosting company down is working in things.

  56. Geez Troy.

    Is it the Zeek situation that's blowing up your site or some other issue?

    Talk about timing.

    Good luck.

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